COMPREHENSIVE

ANNUAL

FINANCIAL

REPORT

City of Pooler, GeorgiaFor the Year Ended December 31, 2018

Prepared by:

Finance Department

CITY OF POOLER, GEORGIA 

Comprehensive Annual Financial Report 

Table of Contents 

For the Year Ended December 31, 2018 

PAGEINTRODUCTORY SECTIONLetter of Transmittal....................................................................................................................................................................... A ‐ 1

Principal Officials........................................................................................................................................................................... A ‐ 5

Organizational Chart...................................................................................................................................................................... A ‐ 6

Certificate of Achievement for Excellence in Financial Reporting........................................................................................... A ‐ 7

FINANCIAL SECTION

INDEPENDENT AUDITORS' REPORT.............................................................................................................................................. B ‐ 1

MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)............................................................................................................. C ‐ 1

BASIC FINANCIAL STATEMENTS:

GOVERNMENT‐WIDE FINANCIAL STATEMENTS:

Statement of Net Position..................................................................................................................................................... D ‐ 1

Statement of Activities.......................................................................................................................................................... D ‐ 2

FUND FINANCIAL STATEMENTS:

Governmental Funds:

Balance Sheet..................................................................................................................................................................... D ‐ 4

Reconciliation of Total Governmental Fund Balances to

Net Position of Governmental Activities..................................................................................................................... D ‐ 5

Statement of Revenues, Expenditures, and Changes in Fund Balances...................................................................... D ‐ 6

Reconciliation of the Statement of Revenues, Expenditures, and Changes in

Fund Balances of Governmental Funds to the Statement of Activities................................................................... D ‐ 7

Proprietary Funds:

Statement of Net Position ‐ Water and Sewer Enterprise Fund.................................................................................... D ‐ 8

Statement of Revenues, Expenses, and Changes in Fund Net Position ‐ Water and Sewer Enterprise Fund.......... D ‐ 10

Statement of Cash Flows ‐ Water and Sewer Enterprise Fund...................................................................................... D ‐ 11

Fiduciary Funds:

Statement of Fiduciary Assets and Liabilities.................................................................................................................. D ‐ 12

NOTES TO THE BASIC FINANCIAL STATEMENTS...................................................................................................................... D ‐ 13

REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A:

Budgetary Comparison Schedule ‐ General Fund.................................................................................................................. E ‐ 1

Schedule of Changes in the Net Pension Liability and Related Ratios................................................................................ E ‐ 2

Retirement Plan Schedule of Contributions........................................................................................................................... E ‐ 3

Schedule of Changes in the Net OPEB Liability and Related Ratios..................................................................................... E ‐ 4

OPEB Plan Schedule of Contributions.................................................................................................................................... E ‐ 5

Notes to Required Supplementary Information..................................................................................................................... E ‐ 6

SUPPLEMENTARY DATA ‐ Combining Fund Financial Statements and Schedules:

Combining Balance Sheet ‐ Nonmajor Governmental Funds............................................................................................... F ‐ 1

Combining Statement of Revenues, Expenditures, and Changes in

Fund balances ‐ Nonmajor Governmental Funds.............................................................................................................. F ‐ 2

Budgetary Comparison Schedules ‐ Nonmajor Governmental Funds:

Confiscated Asset Fund......................................................................................................................................................... F ‐ 3

Hotel / Motel Tax Fund......................................................................................................................................................... F ‐ 4

Statement of Changes in Assets and Liabilities ‐ Municipal Court Fund............................................................................. F ‐ 5

Schedule of Projects Constructed with Special Purpose Local Option Sales Tax Proceeds............................................. F ‐ 6

Schedule of Required Expenditures Generated by the Hotel/Motel Tax............................................................................. F ‐ 7

Component Unit ‐ Pooler Development Authority

Balance Sheet......................................................................................................................................................................... F ‐ 8

Statement of Revenues, Expenditures, and Changes in Fund Balance............................................................................ F ‐ 9

CITY OF POOLER, GEORGIA 

Comprehensive Annual Financial Report 

Table of Contents 

For the Year Ended December 31, 2018 

PAGE

STATISTICAL SECTION

Comments Relative to Statistical Section......................................................................................................................... G ‐ 1

FINANCIAL TRENDS:

Net Position by Component ‐ Last Ten Calendar Years............................................................................................... G ‐ 2Changes in Net Position ‐ Last Ten Calendar Years...................................................................................................... G ‐ 3

Fund Balances, Governmental Funds ‐ Last Ten Calendar Years................................................................................ G ‐ 7

Changes in Fund Balances, Governmental Funds ‐ Last Ten Calendar Years............................................................. G ‐ 8

REVENUE CAPACITY:

Schedule of Tax Revenues and Franchise Fees ‐ Last Ten Calendar Years................................................................. G ‐ 10

Assessed and Actual Value of Taxable Property ‐ Last Ten Calendar Years................................................................ G ‐ 12Direct and Overlapping Property Tax Rates ‐ Last Ten Calendar Years...................................................................... G ‐ 14

Principal Property Taxpayers ‐ Current Year and Nine Years Ago............................................................................... G ‐ 15

Property Tax Levies and Collections ‐ Last Ten Calendar Years.................................................................................. G ‐ 16

DEBT CAPACITY:

Ratios of Outstanding Debt by Type ‐ Last Ten Calendar Years.................................................................................. G ‐ 17Ratios of Net General Bonded Debt Outstanding ‐ Last Ten Calendar Years............................................................. G ‐ 19

Direct and Overlapping Governmental Activities Debt................................................................................................ G ‐ 20

Legal Debt Margin Information ‐ Last Ten Calendar Years.......................................................................................... G ‐ 21

DEMOGRAPHIC AND ECONOMIC INFORMATION:

Demographic and Economic Statistics ‐ Last Ten Calendar Years............................................................................... G ‐ 23

Principal Employers ‐ Current Year and Nine Years Ago............................................................................................. G ‐ 24

OPERATING INFORMATION:

Full Time City Employees by Function/Program ‐ Last Ten Calendar Years............................................................... G ‐ 25

Operating Indicators by Function ‐ Last Ten Calendar Years....................................................................................... G ‐ 26Capital Asset Statistics by Function ‐ Last Ten Calendar Years.................................................................................... G ‐ 27

COMPLIANCE SECTION:

Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an

Audit of Financial Statements Performed in Accordance with Government Auditing Standards............................. H‐1

Schedule of Findings and Responses................................................................................................................................ H‐3

Summary Schedule of Prior Year Findings........................................................................................................................ H‐4

INTRODUCTORY SECTION

CITY OF POOLER

100 Southwest Highway 80Pooler, Georgia 31322

(912) 748-7261Fax: (912) 330-0987

www.pooler-ga.us

MayorMichael F. Lamb

CITY COUNCIL

Bruce AllenRebecca C. Benton

Shannon BlackLarry OlliffMike Royal

Stevie E. Wall

Robert H. Byrd, Jr. - City ManagerSteve Scheer - City Attorney

June 5, 2019

Honorable Mayor,Members of Council, and CitizensCity of Pooler

The City Manager’s office is pleased to present the Comprehensive Annual Financial Report ofthe City of Pooler for the year ended December 31, 2018 The purpose of this report is to provide City Council, management, staff, the public and other interested parties with detailed information reflecting the City’s financial condition. This report also satisfies the state law to publish an annual audit within six months of the close of each fiscal year.

Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.

Mauldin & Jenkins, LLC, Certified Public Accountants have issued an unmodified opinion on the City of Pooler’s financial statements for the year ended December 31, 2018. The independent auditor’s report is located at the front of the financial section of this report.

Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it.

PROFILE OF GOVERNMENT

The City of Pooler is located in Chatham County, Georgia 10 miles west of the City of Savannah. The City encompasses an area of approximately 29 square miles and has a current estimated population of 24,411.

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The City Council appoints a City Manager to manage the City on a daily basis and implement the policies and programs enacted by the Council. The City Council also appoints a City Clerk and a Finance Officer.

The City provides a full range of municipal services, including general government, public safety (police and fire), street and drainage maintenance, solid waste collection, recreation, codeenforcement, and water and sewer utilities.

The Pooler Development Authority, a legally separate entity, was created by the City to improve the standard of living for all citizens of Pooler by providing financing for affordable housing projects and other similar projects without tax increases to the citizens of Pooler. The Pooler Development Authority is considered a component unit of the City of Pooler and is reported separately within the City’s financial statements. Additional information on the Pooler Development Authority can be found in the notes to the financial statements (see note I.B.).

The City Council adopts and reports annual budgets for its general and special revenue funds as required by state law. Each fund is budgeted at the line item level but monitored at the legal level of control (the department level). The legal level of control is the level at which expenditures may not exceed appropriations.

LOCAL ECONOMY

Over the past eighteen years, the City of Pooler has experienced unprecedented growth. In 2000, the US Census Bureau estimated the population of Pooler to be 6,239. As of the current census estimates, the population has almost quadrupled. Several new communities have been developed in Pooler which has also sparked commercial development and employment opportunities. The geographical location of the City combined with the quality of life benefits Pooler has to offer has contributed to the growth.

The City of Pooler continues to experience increases in the number of building permits issued for residential and commercial development. The total number of new construction permits issued in 2018 exceeded 2017 by 34 or 11.2%, and exceeded the 10-year and 5-year averages by 15.5% and 6.4% respectively. New residential construction permits issued in 2018 exceeded 2017 by 22.1%. There are many plans in the works for more development within City Pooler limits, especially commercial development including office complexes, restaurants, and retail establishments.

The City of Pooler has 17 hotels to offer the traveling public on Interstate 95. Annual lodging tax revenues have increased 89.3% over the last five years. The City is anticipating $1,290,000 in lodging tax revenue in 2019. Local Option Sales Tax (LOST) revenue is the city’s largest source of revenue. LOST revenue is expected to be approximately $6,400,000 in 2019. After the decennial census in 2020, LOST distributions will be renegotiated between Chatham County and the municipalities in the County. The City of Pooler expects to receive a higher distribution as a result of the negotiations due to increasing population and development within the City.

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St. Joseph’s/Candler is building a micro-hospital in Pooler that will offer a wide range of medical services. This will be a multi-phase project that will be completed over a 10-year period and mainly serve the growing population in west Chatham and nearby counties. This new campus will be a destination center for patients in need of medical services from across the region. The first phase is scheduled for opening in early 2019. This micro-hospital will also house medical offices and offer clinical services. Once completed, the 170,000-square-foot micro hospital will contribute to Pooler’s economic development by staffing approximately 100 employees.

City Council members voted unanimously to approve site plans for the new GBI Crime Lab campus, a combined 66,000-square-foot facility comprised of a three-story forensic crime lab and a one-story morgue. Once it’s built, the Pooler lab will replace the GBI’s existing Coastal Georgia regional crime lab, which was built 30 years ago on Mohawk Street in Savannah to analyze projectiles, drugs and biological samples recovered at crime scenes. The new facility will house up to 60 employees.

Future commercial development plans tentatively include two new grocery stores, additional restaurants and retail business at the outlet mall. All of these projects will help to stimulate the economy in Pooler, as well as make the city a more attractive place for families to reside.

LONG-TERM FINANCIAL PLANNING AND MAJOR INITIATIVES

Adherence to the City’s financial planning, revenue, and expenditure policies has allowed the City to maintain a general fund unassigned fund balance of $19,902,570 or 98.5% of general fund expenditures. Management believes this balance will be vital to improving the city’s ability to deliver services to the growing population of the City of Pooler and as a buffer against unforeseen events.

The City has taken necessary steps to assure quality growth in Pooler. Infrastructure improvements to the water and sewer system have been made to accommodate the influx of new residents. In 2018, the City of Pooler completed approximately $6,200,000 worth of improvements to the wastewater treatment plant in order to be prepared for future expansion. The current treatment capacity of the plant is 3.34 million gallons per day.

As noted in prior years, City Council has adopted zoning ordinances which encourage planned developments for those property owners of large tracts of land. By professionally planning these projects, the owner can maximize the full potential of their land, and the City can accurately prepare for the growth. Currently there are six different planned communities within the city limits. Savannah Quarters to the south includes a golf community, a retirement village, and a master planned commercial/retail development. The Jabot Tract, also on the south end of town, has been master planned for up-scale single-family, multi-family and commercial developments. The Morgan Tract, located on the north side of Pine Barren Road, has primarily light industrial zoning planned due to its close proximity to Pooler Parkway, Interstate I-16 and I-95 and the Central of Georgia railroad, multi-family and commercial development is also proposed. Godley Station, located to the north, includes retail shopping developments and single and multi-family residential developments. Godley Station at build-out will include approximately 1,500 single-family homes. The 589-acre Morgan Lakes planned unit development (PUD) is located on the

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north side of Jimmy DeLoach Parkway and consists of a mixture of single-family and multi-family town homes. The 717.5-acre Wynn-Capallo Tract PUD is located on the north and south side of Jimmy DeLoach Parkway. The mixed-use development includes commercial/retail and approximately 764 residential development units.

AWARDS AND ACKNOWLEDGMENTS

The Government Finance Officers Association of the United States and Canada (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting to the City of Pooler for its comprehensive annual financial report for the year ended December 31, 2017. This was the seventeenth year the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must establish an easily readable and efficiently organized comprehensive financial report. This report must satisfy both generally acce pted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

This report could not have been completed without the assistance of the entire administrative staff in various departments of the City. We would like to especially acknowledge the dedicated services and help of the staff members in the Finance Department. The Finance staff members are key components in the maintenance of the City’s accounting systems and records, and their contributions are invaluable.

Respectfully submitted,

Robert H. Byrd, Jr.City Manager

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Mayor..................................................................................... Michael F. Lamb

City Council Members

Rebecca Benton, Mayor Pro-Tem..................................... Chair - Streets and Drainage

Bruce Allen.......................................................................... Chair - Planning and Zoning

Shannon Black.................................................................... Chair - Recreation

Larry Olliff........................................................................... Chair - Water and Sewer

Mike Royal.......................................................................... Chair - Public Safety

Stevie E. Wall...................................................................... Chair - Finance

City Manager......................................................................... Robert H. Byrd, Jr.

City Clerk................................................................................ Maribeth Lindler

Finance Officer...................................................................... Christopher T. Lightle

Chief of Police....................................................................... Ashley Brown

Chief of Fire........................................................................... Wade Simmons

Director of Public Works....................................................... Matt Saxon

Director of Recreation.......................................................... Hugh Elton

Director of Human Resources.............................................. Caroline Hankins

City Attorney......................................................................... Steven E. Scheer

CITY OF POOLER, GEORGIA

List of Principal Officials

December 31, 2018

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RESIDENTS

Mayor & Council

City Manager

General Administration

Human Resources

Information Technology

Public Safety

Police

Fire

Public Works

Streets and Roads

Storm Drainage

Solidwaste and Recycling

Facilities Maintenance

Culture and Recreation

Senior Citizen Center

Recreation

Parks

Housing and Development

Inspections

Planning and Zoning

Code Enforcement

City Clerk Finance Officer

Financial Administration

City Attorney

CITY OF POOLER, GEORGIAOrganizational ChartDecember 31, 2018

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Certificate of

Presented to

City of Pooler

For its Comprehensive Annual

December 31, 2017

Executive Director/CEO

Financial Reportfor the Fiscal Year Ended

Reportingin Financial

for ExcellenceAchievement

Text38: Georgia

Government Finance Officers Association

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6001 CHATHAM CENTER DRIVE, SUITE 250 • SAVANNAH, GEORGIA 31405 • 478-464-8000 • FAX 478-464-8051 • www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

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INDEPENDENT AUDITOR’S REPORT

To the Honorable Mayor and Members of the City Council Pooler, Georgia

Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Pooler, Georgia (the “City”), as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Pooler, Georgia, as of December 31, 2018, and the respective changes in financial position and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter As discussed in Notes B and F of the Other Information section of the notes to the financial statements, the City of Pooler, Georgia implemented Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other Than Pensions, as of January 1, 2018. This standard significantly changed the accounting for City of Pooler, Georgia’s net other post-employment benefits (OPEB) liability and the related disclosures. Our opinions are not modified with respect to this matter.

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis (on pages C - 1 through C - 8), the Budgetary Comparison Schedule – General Fund (on page E -1), the Schedule of Changes in the Net Pension Liability and Related Ratios (on page E - 2), the Retirement Plan Schedule of Contributions (on page E - 3), the Schedule of Changes in the Net OPEB Liability and Related Ratios (on page E - 4), the OPEB Plan Schedule of Contributions (on page E - 5), and the Notes to the Required Supplementary Information (on page E - 6) be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Pooler, Georgia’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, the balance sheet and statement of revenues, expenses, and changes in fund balance for the discretely presented component unit, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of special purpose local option sales tax proceeds is presented for the purpose of additional analysis as required by the Official Code of Georgia §48-8-121, and is not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements and schedules, the schedule of special purpose local option sales tax proceeds, and the balance sheet and statement of revenues, expenses, and changes in fund balance for the discretely presented component unit are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules, the schedule of special purpose local option sales tax proceeds, and the balance sheet and statement of revenues, expenses, and changes in fund balance for the discretely presented component unit are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 18, 2019, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Savannah, Georgia June 18, 2019

MANAGEMENT’S DISCUSSION AND ANALYSIS

As management of the City of Pooler, Georgia, we offer readers of the City of Pooler Georgia’s (the “City”) financial

statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended

December 31, 2018. We encourage readers to consider the information presented here in conjunction with

additional information that we have furnished in our letter of transmittal, which can be found on pages A-1 to A-

5 of this report.

FINANCIAL HIGHLIGHTS

Assets and deferred outflows of resources of the City exceeded liabilities and deferred inflows of

resources at the close of the most recent fiscal year by $111,529,808 (net position). Of this amount,

$32,957,567 represents unrestricted net position, which may be used to meet the City’s ongoing

obligations to citizens and creditors.

The City’s total net position increased $8,368,024. The increase is related to the continuing significant

residential and commercial growth within the City.

At the close of the current fiscal year, the City’s governmental funds reported combined fund balances

of $22,106,744 an increase of $3,194,566 in comparison with the prior year. Approximately 90.0% of

this amount ($19,902,570) is available for spending at the government’s discretion (unassigned fund

balance).

At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned,

and unassigned components of fund balance) for the general fund was $20,127,239, or approximately

99.6% of total general fund expenditures.

The City’s total outstanding long-term debt decreased by $4,181,747 during the current fiscal year.

During 2018 the City did not enter into new capital leases for the financing of machinery and equipment.

In addition, a Georgia Environmental Finance Authority loan scheduled to mature in October 2020 was

paid off early in December 2018.

OVERVIEW OF THE FINANCIAL STATEMENTS

The discussion and analysis provided here is intended to serve as an introduction to the City’s basic financial

statements. The City’s basic financial statements consist of three components: 1) government-wide financial

statements, 2) fund financial statements, and 3) the notes to financial statements. This report also includes

supplementary information intended to furnish additional detail to support the basic financial statements

themselves.

Government-wide Financial Statements. The government-wide financial statements are designed to provide

readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The statement of net position presents financial information on all of the City’s assets, liabilities, and

deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases

or decreases in net position may serve as a useful indicator of whether the financial position of the City is

improving or deteriorating.

The statement of activities presents information showing how the City’s net position changed during the

most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise

to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are

reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes

and earned but unused vacation leave).

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Both of the government-wide financial statements distinguish functions of the City that are principally

supported by taxes and intergovernmental revenues (governmental activities) from other functions that are

intended to recover all or a significant portion of their costs through user fees and charges (business-type

activities). The governmental activities of the City include general government, public safety, public works,

health and welfare, culture and recreation, and housing and development. The business-type activities of the

City include water and sewer operations.

The government-wide financial statements include not only the City itself (known as the primary

government), but also the legally separate Pooler Development Authority. By appointing the seven members

of the Authority’s board, Pooler City Council is able to impose its will on the Authority. Financial information

for the Authority is reported separately from the financial information presented for the primary government

itself. The government-wide financial statements can be found on pages D-1 thru D-3 of this report.

Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over

resources that have been segregated for specific activities or objectives. The City, like other state and local

governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal

requirements. All of the funds of the City can be divided into three categories: governmental funds,

proprietary funds, and fiduciary funds.

Governmental Funds. Governmental funds are used to account for essentially the same functions reported

as governmental activities in the government-wide financial statements. However, unlike the government-

wide financial statements, governmental fund financial statements focus on near-term inflows and outflows

of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.

Such information may be useful in assessing a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial

statements, it is useful to compare the information presented for governmental funds with similar

information presented for governmental activities in the government-wide financial statements. By doing

so, readers may better understand the long-term impact of the government’s near-term financing

decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,

expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between

governmental funds and governmental activities.

The City maintains five individual governmental funds. Information is presented separately in the

governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and

changes in fund balances for the general fund, the special purpose local option sales tax fund and the capital

projects fund, which are considered to be major funds. Data from the other two governmental funds are

combined into a single aggregated presentation. Individual fund data for each of these nonmajor

governmental funds is provided in the form of combining statements in the combining and individual fund

statements and schedules section of this report.

The City adopts an annual appropriated budget for its general fund. A budgetary comparison statement has

been provided for the general fund to demonstrate compliance with this budget.

The basic governmental fund financial statements can be found on pages D-4 thru D-7 of this report.

Proprietary Funds. The City maintains an enterprise fund to report the same function, water and sewer

operations, presented as business-type activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only

in more detail. The proprietary fund financial statements provide information for the water and sewer fund

which is considered to be a major fund of the City.

The basic proprietary fund financial statements can be found on pages D-8 thru D-11 of this report.

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Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of

the government. Fiduciary funds are not reported in the government-wide financial statements because

the resources of those funds are not available to support the City’s own programs. The accounting used for

fiduciary funds is much like that used for proprietary funds.

The City maintains one fiduciary fund to report resources held by the City’s municipal court agency fund.

The municipal court fund information is presented in the statement of fiduciary assets and liabilities on

page D-12 of this report.

Notes to the Financial Statements. The notes provide additional information that is necessary to acquire a

full understanding of the data provided in the government-wide and fund financial statements. The notes to

the financial statements can be found on pages D-13 thru D-36 of this report.

Other Information. In addition to the basic financial statements and accompanying notes, this report also

presents required supplementary information concerning the City’s general fund budget, the City’s progress

in funding its obligation to provide pension and other post-employment benefits to its employees and notes

to the required supplementary information. Required supplementary information can be found on pages E-

1 thru E-7 of this report.

The combining statements referred to earlier in connection with nonmajor governmental funds are

presented immediately following the required supplementary information. Combining and individual fund

statements and schedules can be found on pages F-1 thru F-9 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

City of Pooler, Georgia’s Net Position

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. The

City’s combined net position (government and business-type activities) totaled $111,529,808 million at December

31, 2018.

The following table presents a summary of the City’s net position at December 31, 2018:

2018 2017 2018 2017 2018 2017

Current assets........... 25,324,085$ 21,978,107$ 25,189,424$ 22,643,088$ 50,513,509$ 44,621,195$

Capital assets, net...... 67,723,165 67,486,845 41,899,672 43,398,629 109,622,837 110,885,474

Total assets................ 93,047,250 89,464,952 67,089,096 66,041,717 160,136,346 155,506,669

Deferred outflows 3,210,361 2,547,664 486,992 363,315 3,697,353 2,910,979

Current liabilities........ 2,026,726 1,844,736 1,052,557 1,321,964 3,079,283 3,166,700

Noncurrent liabilities.. 25,562,880 27,187,067 22,319,780 24,207,693 47,882,660 51,394,760

Total liabilities............ 27,589,606 29,031,803 23,372,337 25,529,657 50,961,943 54,561,460

Deferred inflows 1,181,107 600,310 160,841 94,094 1,341,948 694,404

Net position:

Net investment in

capital assets......... 49,007,232 46,999,273 20,676,283 20,180,845 69,683,515 67,180,118

Restricted.............. 1,543,752 336,585 7,344,974 7,186,279 8,888,726 7,522,864

Unrestricted........... 16,935,914 15,044,645 16,021,653 13,414,157 32,957,567 28,458,802

Total net position....... 67,486,898$ 62,380,503$ 44,042,910$ 40,781,281$ 111,529,808$ 103,161,784$

Gover n m en t al Ac t iv it ies Busin ess-Typ e Ac t iv it ies To t al

C - 3

By far, the largest portion of the City’s net position (62.5%) reflects its investment in capital assets such as land,

buildings, and equipment, less any related outstanding debt used to acquire those assets. The City uses these

capital assets to provide services to citizens; consequently, these assets are not available for future spending.

Although the City’s investment in its

capital assets is reported net of related

debt, it should be noted that the

resources needed to repay this debt must

be provided from other sources, since the

capital assets themselves cannot be used

to liquidate these liabilities. The second

largest portion of the City’s total net

position (29.6%) reflects unrestricted

assets that may be used to meet the City’s

ongoing obligations to citizens and

creditors. Internally imposed designations

of resources are not presented as

restricted net position. The remaining

balance of total net position contains

resources that are subject to external

restrictions on how they may be used, such as SPLOST revenue and contributions from private developers

restricted for debt service on GEFA loans and future expansion of the City’s wastewater treatment plant.

At the end of the year, the City is able to report positive balances in all three categories of net position for the

government as a whole. Positive balances are reported for the City’s separate governmental and business-type

activities.

The City’s overall net position increased $8,368,024 from the prior fiscal year. The reasons for this overall increase

are discussed in the following sections for governmental activities and business-type activities.

Governmental Activities. During the current fiscal

year, net position for governmental activities

increased $5,106,395 and represents a $1,208,706

(18.1%) increase over the prior year increase of

$3,897,689. While expenses for governmental

activities increased $1,156,768 (5.3%) total revenues

increased $2,365,474 (9.2%). The City continues to

experience increases in revenues associated with the

residential and commercial growth within the City.

The City’s largest “own source” revenue, sales and use

tax revenues, increased $847,394 (10.2%) over the

prior fiscal year. The City’s second largest “own source

revenue, property taxes, increased $429,802 (7.9%)

over the prior fiscal year. Increases in salaries, wages

and employee benefits accounted for $659,445

(57.0%) of the total increase in expenses.

Net investment in capi tal assets

62.5%

Restricted8.0%

Unrestricted29.6%

NET POSITION

58,735,131

62,632,820

67,186,961

54,000,000

56,000,000

58,000,000

60,000,000

62,000,000

64,000,000

66,000,000

68,000,000

2016 2017 2018

NET POSITION OF GOVERNMENTAL ACTIVITIES

Governmental activities

C - 4

Business-type Activities. During the current fiscal year, net position for business-type activities increased

$3,261,629 and represents a $463,655 (16.6%) increase over the prior year increase of $2,797,974. The growth is

attributable to capital grants and contributions of $3,630,586. A portion of total capital grants and contributions,

$2,791,926 or 76.9% is restricted to debt service and future expansion of the City’s wastewater treatment plant.

Residential and commercial growth, along with a 2.5% increase in water and sewer rates accounted for a $305,872

increase in charges for services over the prior fiscal year amount.

City of Pooler Georgia’s Changes in Net Position

The following table presents a summary of the changes in net position for the year ended December 31, 2018:

2018 2017 2018 2017 2018 2017

Revenues:

Program Revenues:

Charges for services....... 5,294,308$ 4,646,719$ 7,889,125$ 7,579,123$ 13,183,433$ 12,225,842$

Operating grants........... 675,736 309,918 - - 675,736 309,918

Capital grants............... 3,496,987 3,528,587 3,630,586 2,695,611 7,127,573 6,224,198

General Revenues:

Property taxes.............. 5,903,775 5,473,973 - - 5,903,775 5,473,973

Sales and use taxes........ 9,128,144 8,280,750 - - 9,128,144 8,280,750

Franchise fees............... 1,830,632 1,717,661 - - 1,830,632 1,717,661

Business taxes............... 1,703,300 1,621,432 - - 1,703,300 1,621,432

Other........................... 169,903 258,271 65,844 57,465 235,747 315,736

Total revenues.................... 28,202,785 25,837,311 11,585,555 10,332,199 39,788,340 36,169,510

Expenses:

General government........ 2,606,081 2,393,700 - - 2,606,081 2,393,700

Public safety.................... 10,283,565 10,130,386 - - 10,283,565 10,130,386

Public works.................... 5,950,846 5,317,459 - - 5,950,846 5,317,459

Health and welfare........... 160,156 131,478 - - 160,156 131,478

Culture and

recreation...................... 2,260,443 2,222,201 - - 2,260,443 2,222,201

Housing and

development.................. 1,318,187 1,080,688 - - 1,318,187 1,080,688

Interest on

long-term debt............... 517,112 663,710 - - 517,112 663,710

Water and sewer............. - - 8,323,926 7,534,225 8,323,926 7,534,225

Total expenses.................... 23,096,390 21,939,622 8,323,926 7,534,225 31,420,316 29,473,847

Change in net position......... 5,106,395 3,897,689 3,261,629 2,797,974 8,368,024 6,695,663

Net position - January 1....... 62,380,503 58,735,131 40,781,281 38,010,436 103,161,784 96,745,567

Net position - December 31. 67,486,898 62,632,820 44,042,910 40,808,410 111,529,808 103,441,230

Net position restatement:

Change in accounting

standard.......................... - (252,317) - (27,129) - (279,446)

Net position - ending........... 67,486,898$ 62,380,503$ 44,042,910$ 40,781,281$ 111,529,808$ 103,161,784$

Governmen t al Ac t iv it ies Busin ess-Ty pe Ac t iv it ies To t al

For the current fiscal year, charges for services was the City’s largest source of revenue (33.1%) and includes water

and sewer fees, solid waste collection fees, and police fine revenue. The second largest source of revenue (22.9%)

was sales tax revenue. Total City revenues increased 10.0% from the previous year mostly due to increases in

charges for services of $957,591 (7.8%), capital grants and contributions of $903,375 (14.5%) and sales and use

taxes of $847,394 (10.2%) which are all directly related to the residential and commercial growth within the City.

C - 5

Governmental expenses totaled

$23,096,390 for the fiscal year. Of

the expenses, 44.5%, or

$10,283,565, are related to public

safety, while public works

accounted for $5,950,846, or

25.8%. General government

activities accounted for the third

highest with 11.3%, General

government activities include

administration, legal, IT, human

resources and government

buildings.

FINANCIAL ANALYSIS OF THE CITY’S GOVERNMENTAL FUNDS

The City utilizes fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows,

outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing

requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net

resources available for discretionary use as they represent the portion of fund balance which has not yet been

limited to use for a particular purpose by either an external party, the City itself, or a group or individual that has

been delegated authority to assign resources for use for particular purposes by the City’s Council.

At December 31, 2018, the City governmental funds reported combined fund balances of $22,106,744, an increase

of $3,194,566 in comparison with the prior year. Approximately 90.0% of this amount ($19,902,570) constitutes

unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the

fund balance is either nonspendable, restricted, committed, or assigned to indicate that it is 1) not in spendable

form ($391,539), 2) restricted for particular purposes ($1,543,752), 3) committed for particular purposes

($224,669), or 4) assigned for particular purposes ($44,214).

The general fund is the chief operating fund of the City. At December 31, 2018, unassigned fund balance of the

general fund was $19,902,570, while total fund balance was $20,518,778. As a measure of the general fund’s

liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total general fund

expenditures. Unassigned fund balance represents approximately 98.5% of total general fund expenditures, while

total fund balance represents approximately 101.5% of that same amount.

The fund balance of the City’s general fund increased by $1,987,266 during the 2018 fiscal year. As discussed

earlier in connection with governmental activities, the increase was due to unanticipated increase in revenues

associated with the residential and commercial growth within the City.

The special purpose local option sales tax capital projects fund (SPLOST), a major fund, had an increase in fund

balance during the current fiscal year of $1,205,758 ending the year with a fund balance of $1,532,557. The entire

fund balance is restricted for approved SPLOST capital projects. In 2018, SPLOST funds were used to complete

traffic signal improvements at the intersection of Pooler Parkway and Airways Avenue. SPLOST funds were also

used for debt service on five fire trucks purchased in 2017 as well as the police department portion of the new

municipal building.

- 4,000,000 8,000,000 12,000,000

General government

Public safety

Public works

Health and welfare

Culture and recreation

Housing and development

EXPENSES AND PROGRAM REVENUES - GOVERNMENTAL ACTIVITIES

Expenses Program Revenue

C - 6

The City’s capital projects fund, a major fund, was established to account for non-SPLOST construction projects

separately in an effort to isolate maintenance and operation expenditures for reporting purposes in the general

fund. The capital projects fund received a transfer from the general fund in 2018 in the amount of $1,630,167

which was used for infrastructure improvements at the intersection of Highway 80 and Rogers Street, Old Town

Pooler drainage improvements and the installation of culverts in the Quacco Canal. The Old Town Pooler drainage

project will continue into the 2019 budget cycle.

GENERAL FUND BUDGETARY HIGHLIGHTS

Original budget compared to final budget. Budget amendments are approved throughout the year to more

accurately reflect the ongoing changes and to abide by state laws. The City’s original budget was adopted on

December 4, 2017. Budget amendments resulted in a net increase in appropriations of $1,268,310 (6.6%) and

was mostly due to an unplanned purchase of property, emergency repairs, infrastructure projects and growth-

related expenditures (e.g., purchase of additional trash carts, increase trash collection charges). The increase in

appropriations was offset by budget increases of $916,195 (6.0%) and $137,000 (5.0%) to tax revenue and licenses

and permits respectively.

Final budget compared to actual results. Major sources of unplanned revenue were as follows:

Tax revenue exceeded the budgeted amount by $691,224. Better than expected revenue from property

taxes ($275,700), motor vehicle title ad valorem taxes ($101,500), local option sales tax ($112,700) and

insurance premium taxes ($130,500) contributed to the higher than planned tax revenue.

Licenses and permits exceeded budgeted revenue by $698,033. Building permit revenue accounted for

$646,300 or 92.6% of the unplanned licenses and permits revenue.

Total general fund revenues were $23,013,886 exceeding the final budgeted amount of $21,117,916 by

$1,895,970 which substantially accounted for the general fund’s increase in fund equity of $1,987,266. Total

overall general fund expenditures were less than the amount budgeted by $299,667.

CAPITAL ASSETS

The statement of net position presents capital assets in two groups: those assets subject to depreciation, such as

equipment or operational facilities and those assets not subject to depreciation such as land and construction-in-

progress. At December 31, 2018, the City’s capital assets net of depreciation for both governmental activities and

business-type activities totaled $109,622,837. Capital assets include assets donated and purchased, land,

buildings, system improvements and machinery and equipment. Capital assets, net of depreciation decreased

$1,262,637 from what was reported at the end of 2017.

Major capital asset events during the year included the following:

The City purchased land on Rogers Street for $423,500.

The City spent $1,369,592 on Quacco Canal and Old Town Pooler drainage improvements. The drainage

improvements accounted for the majority of the increases in construction in progress of governmental

activities.

Pooler Parkway traffic signal improvements were completed in 2018 and work continued on the Rogers

Street signalization. Traffic signal project costs in 2018 were approximately $380,000. Total project costs

for the Pooler Parkway traffic signal improvements were $1,580,949.

The City purchased five new vehicles in 2018 totaling $210,000. The City did not incur any new debt for

the purchase of these vehicles.

The 2015 waste water treatment plant upgrade was completed during the first quarter of 2018. Total costs

of the upgrade were $6,168,619.

Additional information on the City’s capital assets can be found in Note 2D on page D-22 to D-23.

C - 7

DEBT ADMINISTRATION

The City reduced its total debt

by $4,181,747 in 2018.

Governmental activities debt

decreased by $2,187,352 and

Business-type debt decreased

$1,994,395. Two Georgia

Environmental Finance

Authority (GEFA) loans were

finalized in 2018 accounting

for the $623,574 increase in

business-type activities long-

term debt. Total reduction of

GEFA long-term debt was

$2,554,593 including one loan

being paid off ahead of

schedule.

Additional information on the City’s debt and other long-term liabilities can be found in Note 2G on pages D-25

through D-26.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

The City adopted the 2019 general fund budget of $21,077,000 on December 17, 2018. The 2019 budget

represents a 0.2% decrease when compared to the 2018 final budget. Budgeted appropriations in all departments

in 2019 remain relatively stable from 2018. The following economic factors currently affect the City of Pooler and

were considered in developing the 2019 budget:

A property tax millage rate reduction of 1.3%,

An increase in user charges on the City’s current fee schedule,

Expected increases in health insurance premiums, as well as pension and other post-employment benefit

costs, and

The City’s population is approaching 25,000, a 30.6% increase over the 2010 census count.

REQUESTS FOR INFORMATION

This financial report is designed to provide a general overview for the governmental operations of the City of

Pooler. It is designed for anyone with an interest in our government’s finances and management. Questions

concerning any of the information provided in this report or requests for additional information may be addressed

to the City of Pooler, Finance Officer, 100 Highway 80 SW, Pooler, Georgia 31322.

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

01/01/2014 01/01/2015 01/01/2016 01/01/2017 01/01/2018

LONG-TERM DEBT

Governmental activities Business-type activities

C - 8

FINANCIAL SECTION

GOVERNMENT-WIDE FINANCIAL STATEMENTS

CITY OF POOLER, GEORGIA 

Statement of Net Position 

December 31, 2018 

The notes to the basic financial statements are an integral part of this statement. 

Component

Unit

Pooler

Governmental Business‐type Development

Activities Activities Total Authority

ASSETS

Cash and cash equivalents....................................... 21,069,794$      16,868,276$      37,938,070$      144,947$     

Receivables.............................................................. 3,375,999    1,108,836    4,484,835    ‐  

Internal balances..................................................... 180,761   (180,761)   ‐    ‐  

Prepaid..................................................................... 391,539   48,099   439,638   ‐  

Restricted assets

Cash and cash equivalents................................... 305,992   7,344,974    7,650,966    ‐  

Capital assets

Land and construction in progress....................... 9,229,370    524,207   9,753,577    ‐  

Other capital assets, net of depreciation............ 58,493,795    41,375,465    99,869,260    ‐  

Total assets.............................................................. 93,047,250    67,089,096    160,136,346    144,947  

DEFERRED OUTFLOWS OF RESOURCES

Pension related........................................................ 3,092,195    479,262   3,571,457    ‐  

OPEB related............................................................ 118,166   7,730   125,896   ‐  

Total deferred outflows of resources...................... 3,210,361    486,992   3,697,353    ‐  

LIABILITIES

Accounts payable..................................................... 714,820   600,573   1,315,393    ‐  

Salaries and wages payable..................................... 357,170 44,759 401,929   ‐  

Contracts and retainage payable............................. 415,713   ‐    415,713   ‐  

Accrued interest....................................................... 233,031   69,376   302,407   ‐  

Unearned revenue................................................... ‐    45,888   45,888   ‐  

Deposits payable...................................................... 305,992   291,961   597,953   ‐  

Long‐term liabilities

Due within one year............................................. 2,544,614    1,877,137    4,421,751    ‐  

Due in more than one year.................................. 16,224,629    19,388,594    35,613,223    ‐  

Net pension liability................................................. 6,450,208    1,031,583    7,481,791    ‐  

Net OPEB liability..................................................... 343,429   22,466   365,895   ‐  

Total liabilities......................................................... 27,589,606    23,372,337    50,961,943    ‐  

DEFERRED INFLOWS OF RESOURCES

Pension related........................................................ 904,443   142,743   1,047,186    ‐  

OPEB related............................................................ 276,664   18,098   294,762   ‐  

Total deferred outflows of resources...................... 1,181,107    160,841   1,341,948    ‐  

NET POSITION

Net investment in capital assets............................. 49,007,232    20,676,283    69,683,515    ‐  

Restricted for

Capital projects and future expansion................. 1,532,557    6,410,649 7,943,206    ‐  

Public safety......................................................... 11,195   ‐    11,195   ‐  

Debt service......................................................... ‐    934,325 934,325   ‐  

Unrestricted............................................................. 16,935,914    16,021,653    32,957,567    144,947  

Total net position..................................................... 67,486,898$      44,042,910$      111,529,808$    144,947$     

Primary Government

D - 1

CITY OF POOLER, GEORGIA

Statement of Activities

For the Year Ended December 31, 2018

The notes to the basic financial statements are an integral part of this statement.

Operating Capital

Charges for Grants and Grants and

Functions/Programs Expenses Services Contributions Contributions

Governmental activities:

General government................................ 2,606,081$ 1,009,517$ 5,000$ -$

Public safety............................................. 10,283,565 969,367 162,551 1,738,148

Public works.............................................. 5,950,846 1,765,011 479,285 827,689

Health and welfare................................... 160,156 12,149 - -

Culture and recreation............................. 2,260,443 431,975 28,900 931,150

Housing and development....................... 1,318,187 1,106,289 - -

Interest on long-term debt...................... 517,112 - - -

Total governmental activities.............. 23,096,390 5,294,308 675,736 3,496,987

Business-type activities:

Water and sewer...................................... 8,323,926 7,889,125 - 3,630,586

Total business-type activities.............. 8,323,926 7,889,125 - 3,630,586

Total............................................................. 31,420,316$ 13,183,433$ 675,736$ 7,127,573$

Component Unit

Pooler Development Authority................. 3,795$ -$ -$ -$

General revenues:

Taxes:

Change in net position..................................................................................................

Total general revenues.................................................................................................

Net position - beginning, as restated..........................................................................

Net position - ending....................................................................................................

Unrestricted investment earnings...........................................................................

Miscellaneous...........................................................................................................

Business taxes......................................................................................................

Property taxes.......................................................................................................

Sales and use taxes..............................................................................................

Franchise fees......................................................................................................

Selective sales and use taxes...............................................................................

Program Revenues

D - 2

Component

Unit

Business- Pooler

Governmental Type Development

Activities Activities Total Authority

(1,591,564)$ -$ (1,591,564)$

(7,413,499) - (7,413,499)

(2,878,861) - (2,878,861)

(148,007) - (148,007)

(868,418) - (868,418)

(211,898) - (211,898)

(517,112) - (517,112)

(13,629,359) - (13,629,359)

- 3,195,785 3,195,785

- 3,195,785 3,195,785

(13,629,359) 3,195,785 (10,433,574)

(3,795)$

5,903,775 - 5,903,775 -

6,914,333 - 6,914,333 -

2,213,811 - 2,213,811 -

1,830,632 - 1,830,632 -

1,703,300 - 1,703,300 -

53,799 65,844 119,643 -

116,104 - 116,104 -

18,735,754 65,844 18,801,598 -

5,106,395 3,261,629 8,368,024 (3,795)

62,380,503 40,781,281 103,161,784 148,742

67,486,898$ 44,042,910$ 111,529,808$ 144,947$

Primary Government

Net (Expense) Revenue and

Changes in Net Position

D - 3

FUND FINANCIAL STATEMENTS

CITY OF POOLER, GEORGIA 

Balance Sheet 

Governmental Funds 

December 31, 2018 

The notes to the basic financial statements are an integral part of this statement. 

Special Purpose Nonmajor Total

Local Option Capital Governmental Governmental

General Sales Tax Fund Projects Funds Funds

ASSETS

Cash and cash equivalents............................ 19,354,125$    1,660,260$      44,214$      11,195$      21,069,794$   

Receivables................................................... 2,661,422    592,351   ‐    122,226   3,375,999   

Due from other funds................................... 905,074   ‐    236,750   ‐    1,141,824   

Prepaid items................................................ 391,539   ‐    ‐    ‐    391,539  

Restricted cash and cash equivalents........... 305,992   ‐    ‐    ‐    305,992  

Total assets....................................................... 23,618,152$    2,252,611$      280,964$      133,421$      26,285,148$   

LIABILITIES, DEFERRED INFLOWS OF

 RESOURCES AND FUND BALANCES

Liabilities

Accounts payable...................................... 596,853$      ‐$       ‐$       117,967$      714,820$     

Salaries and wages payable...................... 357,170   ‐    ‐    ‐    357,170  

Contracts and retainage payable.............. ‐    ‐    236,750   ‐    236,750  

Due to other funds.................................... 236,750   720,054   ‐    4,259   961,063  

Customer deposits payable...................... 305,992   ‐    ‐    ‐    305,992  

Total liabilities.............................................. 1,496,765    720,054   236,750   122,226   2,575,795   

Deferred inflows of resources

Unavailable revenue ‐ property taxes...... 142,916   ‐    ‐    ‐    142,916  

Unavailable revenue ‐ franchise fees....... 1,459,693    ‐    ‐    ‐    1,459,693   

Total deferred inflows of resources............. 1,602,609    ‐    ‐    ‐    1,602,609   

Combined liabilities and deferred

 inflows of resources..................................... 3,099,374    720,054   236,750   122,226   4,178,404   

Fund balances

Nonspendable........................................... 391,539   ‐    ‐    ‐    391,539  

Restricted.................................................. ‐    1,532,557    ‐    11,195   1,543,752   

Committed................................................ 224,669   ‐    ‐    ‐    224,669  

Assigned.................................................... ‐    ‐    44,214   ‐    44,214  

Unassigned............................................... 19,902,570    ‐    ‐    ‐    19,902,570   

Total fund balances...................................... 20,518,778    1,532,557    44,214   11,195   22,106,744   

Total liabilities, deferred inflows of

 resources and fund balances........................... 23,618,152$    2,252,611$      280,964$      133,421$      26,285,148$   

D - 4

CITY OF POOLER, GEORGIA

Reconciliation of Total Governmental Fund Balances toNet Position of Governmental Activities

December 31, 2018

The notes to the basic financial statements are an integral part of this statement.

22,106,744$

Amounts reported for governmental activities in the statement of net position

are different because:

Capital assets used in governmental activities are not current financial

resources and therefore are not reported in the governmental funds.

However, in the statement of net position the cost of these assets are

are capitalized and expensed over their estimated lives through annual

depreciation expense.

Cost of capital assets........................................................................................... 83,130,448$

Less: accumulated depreciation.......................................................................... (15,407,283) 67,723,165

Other long-term assets are not available to pay for current period expenditures

and therefore are deferred in the governmental funds balance sheet.

Property taxes...................................................................................................... 142,916

Franchise fees...................................................................................................... 1,459,693 1,602,609

Long-term and related liabilities are not due and payable in the current period

and therefore are not reported in the governmental funds balance sheet.

Retainage payable................................................................................................ (178,963)

Certificates of participation................................................................................. (15,300,000)

Capital leases....................................................................................................... (3,000,220)

Accrued interest................................................................................................... (233,031)

Compensated absences....................................................................................... (469,023)

Net pension liability............................................................................................. (6,450,208)

Net OPEB liability................................................................................................. (343,429) (25,974,874)

Deferred outflows and inflows of resources related to pensions are applicable

to future periods and, therefore, are not reported in the fund financial statements.

3,210,361

(1,181,107)

67,486,898$

Total Governmental Fund Balances.......................................................................................................

Net Position of Governmental Activities................................................................................................

Deferred outflows of resources related to pensions and other postemployment benefits..............

Deferred inflows of resources related to pensions and other post employment benefits...............

D - 5

CITY OF POOLER, GEORGIA 

Statement of Revenues, Expenditures, and Changes in Fund Balances 

Governmental Funds 

For the Year Ended December 31, 2018 

The notes to the basic financial statements are an integral part of this statement. 

Special Purpose Nonmajor Total

Local Option Capital Governmental Governmental

General Sales Tax Fund Projects Funds Funds

REVENUES

Taxes............................................................. 16,934,919$    ‐$       ‐$       1,505,889$      18,440,808$   

Licenses and permits.................................... 1,353,033    ‐    ‐    ‐    1,353,033   

Intergovernmental........................................ 495,427   3,494,393    ‐    ‐    3,989,820   

Charges for services...................................... 3,074,542    ‐    ‐    ‐    3,074,542   

Fines and forfeitures.................................... 843,510   ‐    ‐    1,409   844,919  

Investment earnings..................................... 53,666   2,594   133    ‐    56,393  

Contributions and donations......................... 178,900   ‐    ‐    ‐    178,900  

Miscellaneous............................................... 79,889   ‐    ‐    ‐    79,889  

Total revenues.................................................. 23,013,886    3,496,987    133    1,507,298    28,018,304   

EXPENDITURES

Current

General government................................. 2,573,818    ‐    ‐    ‐    2,573,818   

Public safety.............................................. 9,339,066    ‐    ‐    ‐    9,339,066   

Public works.............................................. 5,369,696    ‐    ‐    ‐    5,369,696   

Health and welfare................................... 151,569   ‐    ‐    ‐    151,569  

Culture and recreation.............................. 1,723,782    ‐    ‐    ‐    1,723,782   

Housing and development........................ 543,523   ‐    ‐    752,944   1,296,467   

Capital Outlay............................................... ‐    70,805   1,630,167    ‐    1,700,972   

Debt Service

Principal.................................................... 445,468   1,741,884    ‐    ‐    2,187,352   

Interest...................................................... 61,914   478,540   ‐    ‐    540,454  

Total expenditures............................................ 20,208,836    2,291,229    1,630,167    752,944   24,883,176   

Excess (deficiency) of revenues

over (under) expenditures............................ 2,805,050    1,205,758    (1,630,034)    754,354   3,135,128   

OTHER FINANCING SOURCES (USES)

Transfers in................................................... 752,945   ‐    1,630,167    ‐    2,383,112   

Transfers out................................................. (1,630,167)    ‐    ‐    (752,945)   (2,383,112)   

Sale of general capital assets....................... 46,005   ‐    ‐    ‐    46,005  

Insurance recoveries..................................... 13,433   ‐    ‐    ‐    13,433  

Total other financing sources (uses) (817,784)   ‐    1,630,167    (752,945)   59,438  

Net changes in fund balances.......................... 1,987,266    1,205,758    133    1,409   3,194,566   

Fund balances at beginning of year................. 18,531,512    326,799   44,081   9,786   18,912,178   

Fund balances at end of year........................... 20,518,778$    1,532,557$      44,214$      11,195$      22,106,744$   

D - 6

CITY OF POOLER, GEORGIA 

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the  

Statement of Activities 

For the Year Ended December 31, 2018 

The notes to the basic financial statements are an integral part of this statement. 

3,194,566$      

Amounts reported for governmental activities in the

  statement of activities are different because:

Governmental funds report capital outlays as expenditures.  However, in the

  statement of activities, the cost of those assets is allocated over their

  estimated useful lives as depreciation expense.    This is the amount by

  which capital outlays exceeded depreciation in the current period.

Capital outlays...................................................................................................................... 2,345,195$      

Depreciation expense........................................................................................................... (2,287,838)    57,357   

Revenues in the statement of activities that do not provide current financial

  resources are not reported as revenues in the funds.

Deferred inflows of resources at December 31, 2018......................................................... 1,602,609

Deferred inflows of resources at December 31, 2017......................................................... 1,477,566 125,043   

Repayment of debt principal is an expenditure in the governmental funds, but

  the repayment reduces long‐term liabilities in the statement of net position.

Certificates of participation.................................................................................................. 1,075,000  

Capital leases........................................................................................................................ 1,112,351   2,187,351  

Some expenses reported in the statement of activities do not require the use of

  current financial resources and therefore are not reported as expenditures in

  governmental funds.

(Increase) decrease in compensated absences................................................................... (23,879)  

(Increase) decrease in accrued interest............................................................................... 23,342   

(Increase) decrease in the net pension liability................................................................... (915,663)  

(Increase) decrease in the net OPEB liability....................................................................... 376,377   

Increase (decrease) in deferred outflows related to pensions and OPEB........................... 662,698   

(Increase) decrease in deferred inflows related to pensions and OPEB.............................. (580,797)   (457,922)  

5,106,395$      

Net change in Fund Balances ‐ Total Governmental Funds...................................................................................

Change in Net Position of Governmental Activities...............................................................................................

D - 7

CITY OF POOLER, GEORGIA

Statement of Net Position

Water and Sewer Enterprise Fund

December 31, 2018

The notes to the basic financial statements are an integral part of this statement.

ASSETS

Current assets:

Cash and cash equivalents................................................................................... 16,576,315$

Accounts receivable - net..................................................................................... 1,108,836

Prepaid items....................................................................................................... 48,099

Restricted cash and cash equivalents.................................................................. 291,961

Total current assets................................................................................................. 18,025,211

Noncurrent assets

Restricted cash and cash equivalents:

Water and sewer system expansion................................................................ 6,410,649

Note and loan accounts................................................................................... 934,325

Capital assets:

Land, improvements, and construction in progress........................................ 524,207

Other capital assets, net of depreciation........................................................ 41,375,465

Total noncurrent assets........................................................................................... 49,244,646

Total assets.............................................................................................................. 67,269,857

DEFERRED OUTFLOWS OF RESOURCES

Pension related.................................................................................................... 479,262

OPEB related........................................................................................................ 7,730

Total deferred outflows of resources...................................................................... 486,992

LIABILITIES

Current liabilities:

Accounts payable................................................................................................. 600,573

Salaries and wages payable................................................................................. 44,759

Compensated absences....................................................................................... 35,991

Due to other funds............................................................................................... 180,761

Accrued interest................................................................................................... 69,376

Unearned revenue................................................................................................ 45,888

Customer deposits payable.................................................................................. 291,961

Notes and loans payable...................................................................................... 1,775,822

Capital leases payable......................................................................................... 65,324

Total current liabilities............................................................................................. 3,110,455

Noncurrent liabilities:

Notes and loans payable...................................................................................... 19,382,243

Compensated absences....................................................................................... 6,351

Net pension liability............................................................................................. 1,031,583

Net OPEB liability................................................................................................. 22,466

Total noncurrent liabilities....................................................................................... 20,442,643

Total liabilities......................................................................................................... 23,553,098

(continued)

D - 8

CITY OF POOLER, GEORGIA 

Statement of Net Position 

Water and Sewer Enterprise Fund 

December 31, 2018 

The notes to the basic financial statements are an integral part of this statement. 

DEFERRED INFLOWS OF RESOURCES

Pension related.................................................................................................... 142,743

OPEB related........................................................................................................ 18,098

Total deferred inflows of resources......................................................................... 160,841   

NET POSITION

Net investment in capital assets......................................................................... 20,676,283

Restricted for future expansion........................................................................... 6,410,649

Restricted for debt service................................................................................... 934,325

Unrestricted......................................................................................................... 16,021,653

Total net position..................................................................................................... 44,042,910$    

(concluded)

D - 9

CITY OF POOLER, GEORGIA

Statement of Revenues, Expenses, and Changes in Fund Net Position

Water and Sewer Enterprise Fund

For the Year Ended December 31, 2018

The notes to the basic financial statements are an integral part of this statement.

OPERATING REVENUES

Water fees....................................................................................................... 3,412,357$

Sewer fees........................................................................................................ 4,098,189

Total operating revenues......................................................................................... 7,510,546

OPERATING EXPENSES

Sewer and Wastewater Treatment Plant

Personnel services and employee benefits..................................................... 157,439

Purchased and contracted services.................................................................. 1,696,757

Materials and supplies..................................................................................... 847,251

Depreciation..................................................................................................... 1,453,350

Sewer and Wastewater Treatment Plant operating expenses............................ 4,154,797

Water

Personnel services and employee benefits..................................................... 784,687

Purchased and contracted services.................................................................. 700,050

Materials and supplies..................................................................................... 1,395,651

Depreciation..................................................................................................... 392,437

Water operating expenses................................................................................... 3,272,825

Total operating expenses......................................................................................... 7,427,622

Operating income (loss).......................................................................................... 82,924

NONOPERATING REVENUES (EXPENSES)

Interest income.................................................................................................... 65,844

Interest expense................................................................................................... (517,725)

Total nonoperating revenues (expenses)................................................................ (451,881)

Income (loss) before capital contributions.............................................................. (368,957)

CAPITAL CONTRIBUTIONS

Tap fees................................................................................................................ 838,660

Capital cost recovery charges.............................................................................. 2,791,926

Total capital contributions....................................................................................... 3,630,586

Change in net position............................................................................................. 3,261,629

Net position, beginning of year, as restated........................................................... 40,781,281

Net position, end of year......................................................................................... 44,042,910$

D - 10

CITY OF POOLER, GEORGIA

Statement of Cash Flows

Water and Sewer Enterprise Fund

For the Year Ended December 31, 2018

The notes to the basic financial statements are an integral part of this statement.

CASH FLOWS FROM OPERATING ACTIVITIES

Cash received from customers............................................................................ 7,630,592$

Cash payments to suppliers for goods and services............................................ (4,748,550)

Cash payments to employees for services.......................................................... (910,620)

Net cash provided (used) by operating activities.................................................... 1,971,422

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Debt issued........................................................................................................... 623,575

Principal payments on debt................................................................................. (2,617,970)

Interest payments on debt................................................................................... (529,716)

Tap fees................................................................................................................ 838,660

Capital cost recovery proceeds............................................................................ 2,791,926

Acquisitions and construction of capital assets.................................................. (649,180)

Net cash provided (used) by capital and related financing activities..................... 457,295

CASH FLOWS FROM INVESTING ACTIVITIES

Interest earned on cash and investments........................................................... 65,844

Net cash provided (used) by investing activities..................................................... 65,844

Net increase (decrease) in cash and cash equivalents........................................... 2,494,561

Cash and cash equivalents, beginning of year......................................................... 21,718,689

Cash and cash equivalents, end of year................................................................... 24,213,250$

RECONCILIATION OF OPERATING INCOME TO NET CASH

PROVIDED (USED) BY OPERATING ACTIVITIES

Operating income (loss)...................................................................................... 82,924$

Adjustments to reconcile operating income

to net cash provided by operating activities:

Depreciation..................................................................................................... 1,845,787

Change in assets and liabilities:

Decrease (increase) in accounts receivables............................................... 194,332

Decrease (increase) in inventory................................................................. 5,500

Decrease (increase) in prepaid expenses.................................................... (23,843)

(Decrease) increase in accounts payable and accrued liabilities................ 168,296

(Decrease) increase in interfund payable.................................................... (227,764)

(Decrease) increase in customer deposits payable..................................... (73,810)

Total adjustments................................................................................................ 1,888,498

Net cash provided (used) by operating activities.................................................... 1,971,422$

D - 11

CITY OF POOLER, GEORGIA

Statement of Fiduciary Assets and Liabilities

Fiduciary Fund

December 31, 2018

The notes to the basic financial statements are an integral part of this statement.

Municpal

Court Fund

ASSETS

Cash and cash equivalents................................................................................... 265,778$

Total assets.............................................................................................................. 265,778$

L IABILITIES

Due to others.................................................................................................... 265,778$

Total liabilities......................................................................................................... 265,778$

D - 12

NOTES TO THE FINANCIAL STATEMENTS

CITY OF POOLER, GEORGIA NOTES TO THE BASIC FINANCIAL STATEMENTS 

DECEMBER 31, 2018 

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Description of Government‐wide Financial Statements

The  government‐wide  financial  statements  (i.e.,  the  statement  of  net  position  and  the  statement  ofactivities)  report  information  on  all  of  the  nonfiduciary  activities  of  the  primary  government  and  itscomponent  units.    All  fiduciary  activities  are  reported  only  in  the  fund  financial  statements.Governmental activities, which normally are supported by taxes, intergovernmental revenues, and othernonexchange  transactions,  are  reported  separately  from  business‐type  activities,  which  rely  to  asignificant  extent  on  fees  and  charges  to  external  customers  for  support.    Likewise,  the  primarygovernment is reported separately from certain legally separate component units for which the primarygovernment is financially accountable.

B. Reporting Entity

The City of Pooler, Georgia (government) is a municipal corporation governed by an elected mayor andsix‐member  governing  council  (council).    The  accompanying  financial  statements  present  thegovernment and its component units, entities for which the government is considered to be financiallyaccountable.  Blended component units are, in substance, part of the primary government’s operations,even  though  they  are  legally  separate  entities.    Thus,  blended  component  units  are  appropriatelypresented as  funds of  the primary government.   Currently,  the City has no blended component units.Each discretely presented  component unit  is  reported  in  a  separate  column  in  the  government‐widefinancial statements to emphasize that it is legally separate from the government.

Discretely  presented  component  unit  –  Pooler  Development  Authority  (PDA)  was  created  on November 24, 2003 for the public purpose of economic development within the city  limits of Pooler, Georgia.    The  PDA was  established  pursuant  to  the  Development  Authorities  Law  of  the  State  of Georgia  (O.C.G.A. 36‐62 et  seq.) and operates as a  separate public body corporate and politic.   The PDA’s  board  consists  of  seven members  appointed  by  the  governing  body  of  the  City  of  Pooler, Georgia.   Pooler City Council  is able  to  impose  its will on  the Authority, and  the Authority provides services and benefits which are not limited to the City of Pooler. 

The PDA does not issue a separate stand‐alone financial report. 

C. Joint Ventures

A joint venture is a legal entity or other organization that results from a contractual agreement and thatis owned, operated or governed by two or more participants as a separate and specific activity subjectto  joint  control  in which  the  participants  retain  (a)  an  ongoing  financial  interest  or  (b)  an  ongoingfinancial responsibility.  The government participates in the following joint venture:

Coastal Regional Commission – Under Georgia  law, the City,  in conjunction with other governments  inthe region, is a member of the Coastal Regional Commission (RC) is required to pay annual dues thereto.Membership  in  an RC  is  required by  the Official Code of Georgia Annotated  (OCGA)  Section 50‐8‐34which provides for the organizational structure of an RC in Georgia.  The RC Board membership includesthe chief elected official of each county and municipality of the area.  OCGA 50‐8‐39.1 provides that themember governments are liable for any debts or obligations of the RC.  Management believes that theRC  is  currently  accumulating  sufficient  financial  resources  to meet  its  financial obligations.    Separatefinancial  statements may be obtained  from: Coastal Regional Commission, P.O. Box 1917, Brunswick,Georgia 31521

D - 13

CITY OF POOLER, GEORGIANOTES TO THE BASIC FINANCIAL STATEMENTS

DECEMBER 31, 2018

D. Basis of Presentation – Government-wide Financial Statements

While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from the governmental funds, while the business-type activities incorporate data from the government’s enterprise fund. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements.

As discussed earlier, the government has one discretely presented component unit. While the Pooler Development Authority is not considered to be a major component unit, it is nevertheless shown in a separate column in the government-wide financial statements.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are payments in lieu of taxes where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the government’s water and sewer functions and various other functions of the government. Elimination of these charges would distort the direct costs and programs revenues reported for the various functions concerned.

E. Basis of Presentation – Fund Financial Statements

The fund financial statements provide information about the government’s funds, including its fiduciary fund. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements.

The government reports the following major governmental funds:

The general fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those accounted for in another fund.

The special purpose local option sales tax (SPLOST) fund is used to account for 1% sales tax proceedsrestricted for the acquisition or construction of specific capital projects as authorized by local referendum.

The capital projects fund is used to account for the acquisition or construction of major capital facilities financed with non-SPLOST resources.

The government reports the following major enterprise fund:

The water and sewer fund accounts for water and sewer services provided to the residents of the government. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service.

Additionally, the government reports the following fund types:

Special Revenue Fund – used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects.

Agency Fund – used to account for, on a temporary basis, fines collected by the municipal court that ultimately are transferred to the general fund.

D - 14

CITY OF POOLER, GEORGIANOTES TO THE BASIC FINANCIAL STATEMENTS

DECEMBER 31, 2018

During the course of operations, the government has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in the fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities (i.e. governmental funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between funds included in business-type activities (i.e. enterprise funds) are eliminated so that only the net amount is included as internal balances in the business-type activities column.

Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between the funds included in business-type activities are eliminated so that only the net amount is included as internal balances in the business-type activities column.

F. Measurement Focus and Basis of Accounting

The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within thirty(30) days of the end of the current fiscal period. Expenditures generally are recognized when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as, expenditures related to compensated absences and claims and judgments, are reported only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources.

Property taxes, sales taxes, franchise fees, sanitation fees, and interest associated with the current fiscal period are susceptible to accrual. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period (within 30 days of year-end). All other revenue items are considered to be measurable and available only when cash is received by the government.

The proprietary fund is reported using the economic resources measurement focus and the accrual basis of accounting. The agency fund has no measurement focus but utilizes the accrual basis of accountingfor reporting its assets and liabilities.

D - 15

CITY OF POOLER, GEORGIANOTES TO THE BASIC FINANCIAL STATEMENTS

DECEMBER 31, 2018

G. Assets, Liabilities, Deferred Outflows/Inflows and Net Position or Fund Balance

1. Cash and Cash Equivalents

The government’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition.

State statutes authorize the government to invest in obligations of or obligations guaranteed by the U.S. Government and agencies or corporations of the U.S. Government; obligations of any state; obligations of any political subdivision of any state; certificates of deposit or time deposits of any national state bank or savings and loan which have deposits insured by the FDIC or FSLIC; prime bankers acceptances; repurchase agreements; and the Local Government Investment Pool of the State of Georgia (Georgia Fund 1). Investments are reported at fair value.

Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Mortgages are valued on the basis of future principal and interest payments, and are discounted at prevailing interest rates for similar instruments. The fair value of real estate investments is based on independent appraisals. Investments that do not have an established market are reported at estimated fair values.

2. Receivables

In the fund financial statements, material receivables in governmental funds include revenue accruals such as property taxes, franchise fees, grants and other similar intergovernmental revenues since they are usually both measurable and available. Nonexchange transactions collectible but not available are deferred in the fund financial statements. Accounts receivable comprise the majority of proprietary fund receivables. Trade receivables are shown net of an allowance for uncollectibles.

3. Inventories and Prepaid Items

All inventories (when significant) are valued at cost using the first in/first out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

4. Restricted Assets

Assets are reported as restricted when limitations on their use change the nature or normal understanding of the availability of the asset. Such constraints are either externally imposed by creditors, contributors, grantors, or laws of other governments, or are imposed by law through constitutional provisions or enabling legislation. Restricted assets in the enterprise funds represent cash and cash equivalents and investments set aside for repayment of deposits to utility customers, for debt service and for future expansion of the water and sewer system.

D - 16

CITY OF POOLER, GEORGIANOTES TO THE BASIC FINANCIAL STATEMENTS

DECEMBER 31, 2018

5. Capital Assets

Capital assets, which include property, plant, equipment and infrastructure assets (e.g. roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $10,000 and an estimated useful life in excess of one year.

General infrastructure assets (i.e. those reported by governmental activities), acquired prior to January 1, 2003 are not reported in the basic financial statements. As the government constructs or acquires additional capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially amount spent in relation to capital assets that do not increase the capacity or efficiency of the item or increase its estimated useful life. Donated capital assets, donated works of art and similar items and capital assets received in a service concession arrangement are required to be reported at acquisition value.

Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. During the year endedDecember 31, 2018, there was no interest capitalized by the government’s business-type activitiesrelating to the construction of capital assets.

All capital assets are depreciated, except for land and construction in progress. Improvements are depreciated over the remaining useful lives of the related capital assets. Depreciation is computed using the straight-line method over the following useful lives:

Governmental Business-Type

Activities Activities

Description Estimated Lives Estimated Lives

Building and improvements.............................. 20 - 50 years 20 - 50 years

Machinery and equipment................................ 5 - 20 years 5 - 20 years

Vehicles............................................................. 3 - 8 years 3 - 8 years

Infrastructure.................................................... 50 years

6. Long-term Obligations

In the government-wide financial statements and proprietary fund type in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, or business-type activities statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

D - 17

CITY OF POOLER, GEORGIA NOTES TO THE BASIC FINANCIAL STATEMENTS 

DECEMBER 31, 2018 

7. Pension Plan and Other Postemployment Benefit (OPEB) Plan

For purposes of measuring the net pension liability and the net OPEB liability, deferred outflows ofresources and deferred  inflows of resources related to the City of Pooler Retirement Plan and theCity of Pooler OPEB Plan, related expense, information about the fiduciary net position of the plansand additions  to/deductions  from  the plans  fiduciary net position have been determined on  thesame basis as they are reported by the plans. For this purpose, benefit payments (including refundsof employee contributions) are recognized when due and payable  in accordance with  the benefitterms. Investments are reported at fair value.

8. Deferred Outflows/Inflows of Resources

In addition  to assets,  the  statement of net position will  sometimes  report a  separate  section  fordeferred outflows of  resources.   This separate  financial statement element, deferred outflows ofresources, represents a consumption of net position that applies to a future period(s) and so willnot be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of net position will sometimes report a separate section fordeferred  inflows  of  resources.    This  separate  financial  statement  element,  deferred  inflows  ofresources, represents the acquisition of net position that applies to a future period(s) as so will notbe recognized as an  inflow of resources  (revenue) until that time.   The government has only onetype of  item, which arises only under a modified accrual basis of accounting, which qualifies  forreporting  in  this  category.    Accordingly,  the  item,  unavailable  revenue,  is  reported  only  in  thegovernmental funds balance sheet.  The governmental funds report unavailable revenues from twosources:  property  taxes  and  franchise  fees.    These  amounts  are  deferred  and  recognized  as  aninflow  of  resources  in  the  period  that  the  amounts  become  available.  The  government‐widestatements  and proprietary  fund  type  in  the  fund  financial  statements have  additional deferredoutflows of resources and deferred inflows of resources not reported on the modified accrual basis.These deferred outflows of  resources and deferred  inflows of  resources  related  to pensions andother postemployment benefits, result from changes in net pension liability not included in expensedue to effects in actuarial differences, changes in assumptions, and differences between actual andprojected earnings on plan investments.

9. Equity Classifications

Equity  is  classified  as  net  position  and  displayed  in  three  components  in  the  government‐widefinancial statements and in the proprietary fund type in the fund financial statements.

Net investment in capital assets consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes,  or  other  borrowings  that  are  attributable  to  the  acquisition,  construction,  or improvements of those assets. 

Restricted net position consists of net position with constraints placed on the use either by (1) external  groups  such  as  creditors,  grantors,  contributors,  or  laws  and  regulations  of  other governments; or (2) law through constitutional provisions or enabling legislation. 

Unrestricted net position  consists of all other net position  that do not meet  the definition of “restricted” or “net investment in capital assets”. 

D - 18

CITY OF POOLER, GEORGIANOTES TO THE BASIC FINANCIAL STATEMENTS

DECEMBER 31, 2018

In the fund financial statements, governmental funds report aggregate amounts for five classifications of fund balances based on the constraints imposed on the use of these resources. The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form – prepaid items or inventories; or (b) legally or contractually required to be maintained intact.

The spendable portion of the fund balance comprises the remaining four classifications: restricted, committed, assigned, and unassigned.

Restricted fund balance reflects constraints imposed on resources either (a) externally by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.

Committed fund balance can only be used for specific purposes pursuant to constraints imposed by formal resolutions of the city council – the government’s highest level of decision making authority. Those committed amounts cannot be used for any other purpose unless the city council removes the specified use by taking the same type of action imposing the commitment. This classification also includes contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.

Assigned fund balance describes the portion of fund balance that reflects the government’s intended use of resources, but is neither restricted nor committed. The City of Pooler’s fund balance policy authorizes the finance officer to designate portions of fund balance as assigned at any time. The finance officer may also remove assigned fund balances as he or she deems appropriate. In all governmental funds other than the general fund, assigned fund balance may be the residual fund balance designation after nonspendable, restricted, and committed amounts have been reported.

Unassigned fund balance is the residual classification for the general fund. It is also used to report negative fund balances in other governmental funds.

10. Net Position Flow Assumption

Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.

11. Fund Balance Flow Assumption

Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

D - 19

CITY OF POOLER, GEORGIANOTES TO THE BASIC FINANCIAL STATEMENTS

DECEMBER 31, 2018

12. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that may affect the amounts reported in the financial statements and the related notes. Accordingly, actual results could differ from these estimates.

H. Revenues and Expenditures/Expenses

1. Program Revenues

Amounts reported as program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenue.

2. Property Taxes

Property taxes are levied as of January 1 on property values assessed on the same date. A millage rate of 3.799 mills was adopted on July 16, 2018. Tax bills were rendered on September 19, 2018and are considered past due on December 16, 2018 at which time the applicable property is subject to lien and penalties and interest are assessed.

3. Compensated Absences

It is the government’s policy to permit employees to accumulate earned but unused paid time off. The entire accrued balance is payable at the time of employment termination unless the employee is discharged for cause. All paid time off (when material) is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.

4. Proprietary Funds Operating and Nonoperating Revenues and Expenses

Proprietary funds distinguish operating revenues and expense from nonoperating items. Operating revenues and expense generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Water and Sewer Fund are charges to customers for services provided. Operating expenses include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

D - 20

CITY OF POOLER, GEORGIA NOTES TO THE BASIC FINANCIAL STATEMENTS 

DECEMBER 31, 2018 

II. DETAILED NOTES ON ALL ACTIVITIES AND FUNDS

A. Cash Deposits with Financial Institutions

At year‐end the carrying amount of the government's deposits was $45,853,304 and the bank balancewas $46,743,775. As of December 31, 2018, the entire bank balance was insured and collateralized withsecurities held by the government or its agent in the government’s name.

Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not bereturned to the government.  The Official Code of Georgia Annotated (OCGA) Section 45‐8‐12 providesthat there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by a surety bond, by guarantee of  insurance, or by collateral.   Theaggregate of  the  face  value of  such  surety bond and  the market  value of  securities pledged  shall beequal  to not  less  than 110% of  the public  funds being  secured after  the deduction of  the amount ofdepository insurance.  The government has no custodial credit risk policy that would require additionalcollateral requirements.

B. Receivables

Amounts are aggregated  into a single  receivable  (net of allowance  for uncollectible accounts)  line  forcertain funds and aggregated columns.   Below  is the detail of receivables for the general fund, SPLOSTfund  and  the nonmajor  governmental  funds  in  the  aggregate,  including  the  applicable  allowance  foruncollectible accounts.

Nonmajor

Receivable General SPLOST Governmental Total

Franchise fees............................................................ 1,540,684$      ‐$       ‐$     1,540,684$     

Property taxes............................................................ 236,261   ‐    ‐   236,261  

Sales taxes.................................................................. 640,667   ‐    ‐   640,667  

Lodging taxes............................................................. ‐    ‐    122,226    122,226  

Intergovernmental..................................................... 245,836   592,351    ‐   838,187  

Other.......................................................................... 694   ‐    ‐   694  

Gross receivables 2,664,142   592,351    122,226    3,378,719  

Less: Allowance for uncollectibles......................... (2,720)     ‐    ‐   (2,720)  

Net receivables.......................................................... 2,661,422$      592,351$       122,226$      3,375,999$     

Accounts receivable reported in the water and sewer fund represents uncollected charges for water and sewer  services  provided  to  customers.    The  allowance  for  uncollectible  accounts  at  year  end  was $279,675. 

D - 21

CITY OF POOLER, GEORGIANOTES TO THE BASIC FINANCIAL STATEMENTS

DECEMBER 31, 2018

C. Tax Abatements

The City has entered into tax abatement agreements to promote economic development in the County and City through the Savannah Economic Development Authority (SEDA). SEDA can enter into agreements for industrial projects to encourage the creation of jobs and new capital investment through an "Investment Assistance Program." Georgia case law and statutory provisions, including the Development Authorities Law (Title 36 Chapter 62 of the Georgia Code Annotated), provide SEDA with the power to enter into such agreements with businesses. The City has determined that these agreements will promote and expand for the public good and welfare, industry and trade within the City and reduce unemployment to the greatest extent possible, and will be acting in furtherance of the public purposes for which it was created.

For the fiscal year ended December 31, 2018, the City abated property taxes totaling $373,027.

D. Capital Assets

Capital asset activity for the year ended December 31, 2018 was as follows:

Beginning Ending

Balance Increases Decreases Transfers Balance

Governmental Activities:

Non-Depreciable Assets:

Land..................................................... 6,217,104$ 423,500$ -$ -$ 6,640,604$

Construction in progress...................... 2,405,000 1,764,715 - (1,580,949) 2,588,766

Total non-depreciable capital assets...... 8,622,104 2,188,215 - (1,580,949) 9,229,370

Depreciable Assets:

Buildings and improvements............... 34,141,265 - - - 34,141,265

Machinery, equipment and vehicles... 14,226,962 335,943 186,890 - 14,376,015

Infrastructure....................................... 23,802,849 - - 1,580,949 25,383,798

Total depreciable capital assets............. 72,171,076 335,943 186,890 1,580,949 73,901,078

Accumulated Depreciation

Buildings and improvements............... (3,080,909) (730,933) - - (3,811,842)

Machinery, equipment and vehicles... (7,620,326) (1,033,739) (186,890) - (8,467,175)

Infrastructure....................................... (2,605,100) (523,166) - - (3,128,266)

Total accumulated depreciation............. (13,306,335) (2,287,838) (186,890) - (15,407,283)

Total Governmental Activities................ 67,486,845$ 236,320$ -$ -$ 67,723,165$

Depreciation expense was charged to functions/programs of the governmental activities as follows:

Depreciation

Function Expense

General government........................................................... 425,272$

Public safety........................................................................ 808,596

Public works......................................................................... 532,390

Health and welfare.............................................................. 6,200

Culture and recreation......................................................... 509,984

Housing and development................................................... 5,396

Total depreciation expense - governmental activities....... 2,287,838$

D - 22

CITY OF POOLER, GEORGIA NOTES TO THE BASIC FINANCIAL STATEMENTS 

DECEMBER 31, 2018 

Changes in business‐type activities capital asset for the year ended December 31, 2018 was as follows: 

Beginning Ending 

Balance Increases Decreases Net Transfers Balance

Business‐type Activities:

Non‐Depreciable Assets:

Land..................................................... 172,139$       ‐$      ‐$      ‐$      172,139$      

Construction in progress...................... 6,257,583    263,104   ‐   (6,168,619)   352,068  

Total non‐depreciable capital assets...... 6,429,722    263,104   ‐   (6,168,619)   524,207  

Depreciable Assets:

Buildings and improvements............... 55,845,650    40,895   ‐   6,168,619    62,055,164   

Machinery, equipment and vehicles... 1,823,864    42,831   ‐   ‐   1,866,695               

Total depreciable capital assets............. 57,669,514    83,726   ‐   6,168,619    63,921,859   

Accumulated Depreciation

Buildings and improvements............... (19,353,647)   (1,632,770)   ‐   ‐   (20,986,417)  

Machinery, equipment and vehicles... (1,346,960)   (213,017)    ‐   ‐   (1,559,977)  

Total accumulated depreciation............. (20,700,607)   (1,845,787)   ‐   ‐   (22,546,394)  

Total Business‐type Activities................. 43,398,629$  (1,498,957)$   ‐$      ‐$      41,899,672$ 

E. Interfund Receivables, Payables and Transfers

Interfund receivable and payable balances at December 31, 2018 are as follows:

Special Purpose

Local Option Nonmajor Water

Receivable Fund General Sales Tax Fund Governmental and Sewer Amount

General ‐$      720,054$       4,259$       180,761$       905,074$      

Capital Projects 236,750    ‐   ‐     ‐   236,750   

236,750$       720,054$       4,259$       180,761$       1,141,824$      

Payable Fund

These  balances  represent  loans  between  the  borrower  fund  and  the  lender  fund.    These  balances resulted  from  the  time  lag  between  the  dates  that  1)  interfund  goods  and  services  are  provided  or reimbursable  expenditures  occur,  2)  transactions  are  recorded  in  the  accounting  system,  and  3) payments  between  funds  are made.    Interfund  receivables  and  payables  are  reported  in  the  fund financial statements; however, they are eliminated  in the government‐wide financial statements  if the interfund loan is between governmental funds.  

D - 23

CITY OF POOLER, GEORGIANOTES TO THE BASIC FINANCIAL STATEMENTS

DECEMBER 31, 2018

A summary of interfund transfers by fund type is as follows:

Transfer In Transfer Out Purpose Amount

Capital Projects Fund General Fund Fund construction projects 1,630,167$

General Fund Nonmajor governmental funds Distribution of tax revenue 752,945

2,383,112$

Interfund transfers are used to 1) move revenues from the fund that statute or budget requires collecting them to the fund that statute or budget requires to expend them, 2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, and 3) use unrestricted revenues collected to finance various programs accounted for in other funds in accordance with budgetary authorizations. Transfers are eliminated in the government-wide financial statements if the interfund transfer is within the governmental fund group.

F. Capital Leases

The City has entered into lease agreements as lessee for financing of equipment and vehicles used in governmental and business-type activities. This year $449,013 and $20,427 was included in depreciation expense of governmental activities and business-type activities respectively. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of future minimum lease payments as of the inception date.

The assets acquired through capital lease are as follows:

Governmental Business-Type

Activities Activities

Machinery and Equipment................................ 5,497,165$ 306,398$

Less: Accumulated depreciation....................... (2,015,977) (102,133)

Total.................................................................. 3,481,188$ 204,265$

The following is a schedule of the future minimum lease payments under the capital leases, and the present value of the net minimum lease payments at December 31, 2018:

Governmental Business-type

Year Ending December 31, Activities Activities

2019 1,128,294$ 66,627$

2020 1,035,589 -

2021 315,534 -

2022 295,239 -

2023 250,457 -

2024 - 2027 197,639 -

Total minimum lease payments...................... 3,222,752 66,627

Less: amount representing interest................. (222,532) (1,303)

Present value of minimum lease payments.... 3,000,220$ 65,324$

D - 24

CITY OF POOLER, GEORGIANOTES TO THE BASIC FINANCIAL STATEMENTS

DECEMBER 31, 2018

G. Long -term Debt

Installment Sale Agreement – Munipal Complex

In July 2015, the City entered into an installment sale agreement with the Georgia Municipal Association, Inc. providing $18,475,000 to finance the construction of the municipal complex. The agreement carries an interest rate of 2.60% and has a term of fifteen years with final maturity on July 1, 2030.

Annual debt service requirements to maturity for the contractual obligation are as follows:

Year Ending December 31, Principal Interest Total

2019 1,105,000$ 397,800$ 1,502,800$

2020 1,130,000 369,070 1,499,070

2021 1,160,000 339,690 1,499,690

2022 1,190,000 309,530 1,499,530

2023 1,220,000 278,590 1,498,590

2024 - 2028 6,605,000 899,730 7,504,730

2029 - 2030 2,890,000 113,320 3,003,320

15,300,000$ 2,707,730$ 18,007,730$

Georgia Environmental Facilities Authority (GEFA) Loans

The City has entered into loan agreements with GEFA, a state agency. The GEFA makes low interest long-term loans to fund improvements to publicly owned water and sewer systems. The loan proceeds have been used to finance water and sewer projects to provide water and sewer access to areas of commercial and residential development throughout the City.

The City has entered into water and sewer agreements with land owners (developers) to assist in the repayment of the GEFA loans. Pursuant to the water and sewer agreements, the land owners are required to contemporaneousley provide, with the excecution of the agreement, an irrevocable letter of credit or financial obligation bond (financial guarantee) in the amount of the land owners shared cost of the project. In addition, the agreement authorizes the City to collect a GEFA Loan Cost Recovery Fee from customers connecting to the water and sewer system. The cost recovery fee revenue is restricted to the repayment of the related GEFA loans and reduces the land owners financial guarantee to the project.

The City has the following GEFA loans outstanding at year end:

Original Interest Balance

Contract Number Amount Rate 12/31/2018

02-L33WQ 672,289$ 4.36% 294,383$

CWSRF 02-007 12,593,549 3.00% 6,063,794

03-L42WJ 3,103,709 4.16% 1,603,589

05-L23WJ 2,406,407 4.14% 873,523

11-L11WJ 901,235 3.44% 599,919

13-L29WJ 2,644,538 2.40% 2,388,334

13-L30WJ 3,810,627 0.70% 3,401,731

CWSRF 15-020 6,022,796 1.09% 5,932,792

21,158,065$ Long-term portion in repayment.......................................................................

D - 25

CITY OF POOLER, GEORGIANOTES TO THE BASIC FINANCIAL STATEMENTS

DECEMBER 31, 2018

Annual debt service requirements to maturity for the GEFA Loans are as follows:

Year Ending December 31, Principal Interest Total

2019 1,775,822$ 462,246$ 2,238,068$

2020 1,821,941 416,126 2,238,067

2021 1,869,525 368,542 2,238,067

2022 1,918,626 319,441 2,238,067

2023 1,969,296 268,771 2,238,067

2024 - 2028 7,114,986 674,193 7,789,179

2029 - 2033 2,618,695 258,215 2,876,910

2034 - 2038 2,069,174 55,730 2,124,904

Totals.............................................. 21,158,065$ 2,823,264$ 23,981,329$

Changes in Long-Term Liabilities

Amounts

Beginning Ending Due Within

Balance Additions Reductions Balance One Year

G overnm enta l Act ivi t ies :

Note payable - municipal complex..... 16,375,000$ -$ 1,075,000$ 15,300,000$ 1,105,000$

Capital lease obligations..................... 4,112,572 - 1,112,352 3,000,220 1,040,945

Long-term debt................................ 20,487,572 - 2,187,352 18,300,220 2,145,945

Compensated absences....................... 445,144 166,565 142,686 469,023 398,669

Net pension liability............................ 5,534,545 915,663 - 6,450,208 -

Net OPEB liability................................ 719,806 - 376,377 343,429 -

Total Governmental Activities................ 27,187,067$ 1,082,228$ 2,706,415$ 25,562,880$ 2,544,614$

Bus ines s-Type Act ivi t ies :

GEFA loans.......................................... 23,089,084$ 623,574$ 2,554,593$ 21,158,065$ 1,775,822$

Capital lease obligations..................... 128,700 - 63,376 65,324 65,324

Long-term debt................................ 23,217,784 623,574 2,617,969 21,223,389 1,841,146

Compensated absences....................... 57,707 14,787 30,152 42,342 35,991

Net pension liability............................ 885,115 146,468 - 1,031,583 -

Net OPEB liability................................ 47,087 - 24,621 22,466 -

Total Business-Type Activities................. 24,207,693$ 784,829$ 2,672,742$ 22,319,780$ 1,877,137$

For the governmental activities, long-term liabilities are generally liquidated by the general fund and the SPLOST fund. For business-type activities, long-term liabilities are liquidated by the water and sewer enterprise fund.

D - 26

CITY OF POOLER, GEORGIANOTES TO THE BASIC FINANCIAL STATEMENTS

DECEMBER 31, 2018

H. Fund Balance Classifications

Amounts for specific purposes by fund and fund classifications for the year ended December 31, 2018, are as follows:

Classification/Fund Purpose Amount

Nonspendable

391,539$

Restricted

Special Purpose Local Option

1,532,557

11,195

Committed

224,669

Assigned

44,214

Unassigned

19,902,570

22,106,744$ Total fund balance..................................................................................................

General fund.................................... Prepaid items.......................................

Capital projects....................................

Public safety.........................................

Sales Tax fund................................

General fund.......................................................................................................

Beautification.......................................

Confiscated Asset fund....................

General fund....................................

Capital Projects fund........................ Capital projects....................................

III. OTHER INFORMATION

A. Defined Benefit Pension Plan and Net Pension Liability

Plan description – The City of Pooler Pension Plan (the Plan) is a defined benefit pension plan covering all employees, officials are not covered. The Plan is affiliated with the Georgia Municipal Employees Benefit System (GMEBS), a statewide, agent multiple-employer type plan adminstered by the Georgia Municipal Association. The Georgia Municipal Association handles all administrative and investment functions relative to the Plan. The Georgia Municipal Association issues a publicly available financial report that includes financial statements and required supplementary information for the Plan. That report may be obtained by writing to Georgia Municipal Association, 201 Pryor Street, SW, Atlanta, Georgia 30303.

Benefits provided – The Plan provides retirement, disability, and death benefits to plan members as well as an annual cost of living adjustment. Benefits are fully vested after 5 years of service. Participants become eligible to retire earlier of 62 with 5 years of service and 55 with 30 years of service. These benefit provisions and all other requirements are established and amended by City Council.

Employees covered by benefit terms – As of July 1, 2018, the date of the latest actuarial valuation, the plan membership included the following categories of participants:

36

32

187

255

Inactive employees (or their beneficiaries) currently receiving benefits...............

Inactive employees entitled to, but not yet receiving benefits...............................

Active employees.....................................................................................................

Total.........................................................................................................................

D - 27

CITY OF POOLER, GEORGIANOTES TO THE BASIC FINANCIAL STATEMENTS

DECEMBER 31, 2018

Contributions – The GMEBS Board of Trustees has adopted an actuarial funding policy for determination of annual contributions and the systematic funding of liabilities arising under the Plan. The annual minimum contribution is the sum of 1) the normal cost (including administrative expenses), 2) the closed level dollar amortization of the unfunded actuarial accrued liability over a period that ranges from 10 to 30 years based on the funding policy adopted by the GMEBS Board of Trustees, and 3) interest on these amounts from the valuation date to the date contributions are paid (assumed monthly). The GMEBS Board of Trustees has adopted an actuarial funding policy that requires a different funding level than the estimated minimum annual contribution to minimize fluctuations in annual contribution amounts and to accumulate sufficient funds to secure benefits under the Plan. If the employer contributes the recommended contribution developed under the actuarial funding policy each year, the Plan will meet applicable state funding standards. The estimated minimum annual contribution under these standards is $995,460.

Net pension liability – The City’s net pension liability was measured as of March 31, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2018.

Actuarial assumptions – The total pension liability in the July 1, 2018 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Investment rate of return 7.50%

Projected salary increases 2.75% plus service based merit increases

Cost of living adjustment 2.00% for participants hired prior to July 1, 2017

1.50% for participants hired on or after July 1, 2017

Source of mortality assumptions:

Healthy: RP-2000 Combined Healthy Mortality Table with sex-distinct rates,

set forward two years for males and one year for females

Disabled: RP-2000 Disabled Retiree Mortality Table with sex-distinct rates

Plan termination basis (all lives): 1994 Group Annuity Reserving Unisex Table

The mortality and economic actuarial assumptions used in the July 1, 2018 actuarial valuation werebased on the results of an actuarial experience study for the period January 1, 2010 to June 30, 2014.

(This area purposely left blank)

D - 28

CITY OF POOLER, GEORGIANOTES TO THE BASIC FINANCIAL STATEMENTS

DECEMBER 31, 2018

The long-term expected rate of return on pension plan investments was determined using the building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The difference between the resulting rate and the rate on the ongoing basis is a margin for adverse deviation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of March 31, 2018 are summarized in the following table:

Long-term

Target Expected Real

Allocation Rate of Return

Domestic equity 45.00% 6.71%

International equity 20.00% 7.71%

Real estate 10.00% 5.21%

Global Fixed income 5.00% 3.36%

Domestic Fixed income 20.00% 2.11%

Cash 0.00%

Total 100.00%

Asset Class

Discount rate – The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed the City contributions will be made at the current contribution rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Changes in the net pension liability are as follows:

Total Pension Fiduciary Net Net Pension

Liability Position Liability

20,749,186$ 14,329,526$ 6,419,660$

Changes for the year:

835,687 - 835,687

1,575,795 - 1,575,795

1,062,881 - 1,062,881

- 1,143,278 (1,143,278)

263,585 (263,585)

- 1,800,503 (1,800,503)

(832,684) (832,684) -

- (38,349) 38,349

756,785 - 756,785

3,398,464 2,336,333 1,062,131

24,147,650$ 16,665,859$ 7,481,791$

Balances at March 31, 2017...................................................

Service cost..........................................................................

Net changes...........................................................................

Balances at March 31, 2018...................................................

Interest................................................................................

Difference between expected and actual experience........

Contributions, employer......................................................

Net investment income......................................................

Benefit payments................................................................

Other...................................................................................

Contributions, employee.....................................................

Administrative expense......................................................

The balances at March 31, 2017 and 2018 include entry age normal liabilities calculated using ages and service amounts as of July 1, 2017 and 2018, respectively, and constitute measurements of the net pension liability for the fiscal years ending December 31, 2017 and 2018 respectively.

D - 29

CITY OF POOLER, GEORGIA NOTES TO THE BASIC FINANCIAL STATEMENTS 

DECEMBER 31, 2018 

Sensitivity of the net pension liability to changes in the discount rate – The following represents the net pension  liability of  the City calculated using  the discount rate of 7.50%, as well as what  the City’s net pension liability would be if it were calculated using a discount rate that is 1.00% point lower (6.50%) or 1.00% point higher (8.50%) than the current rate: 

1.00% Current 1.00%

Decrease Discount Rate Increase

(6.50%) (7.50%) (8.50%)

11,081,305$     7,481,791$       4,556,633$      City's net pension liability (asset)...................................

Pension plan fiduciary net position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued GMEBS financial report. 

Pension expense for the year ended December 31, 2018: 

835,687$      

1,575,795  

(263,585)  

38,349   

(1,131,302)   

177,146   

77,483   

291,887   

Expensed portion of current year period differences between

(133,841)  

Current year recognition of deferred inflows and outflows established

198,097   

1,665,716$     

  projected and actual investment earnings............................................................

Total expense...........................................................................................................

  projected and actual experience in total pension liability....................................

Service cost..............................................................................................................

Interest on total pension liability............................................................................

Employee contributions...........................................................................................

Administrative expenses.........................................................................................

Expensed portion of current year period differences between

Expected return on assets.......................................................................................

  in prior years..........................................................................................................

Expensed portion of current year period assumption changes...............................

Current year plan changes.......................................................................................

At  December  31,  2018,  the  City  reported  deferred  outflows  of  resources  and  deferred  inflows  of resources related to pensions from the following sources: 

Deferred Outflow Deferred Inflow

of Resources of Resources

1,489,015$      (108,345)$     

509,782    ‐  

Net difference between projected and actual earnings

349,970    (938,841)  

1,222,690   ‐  

3,571,457$      (1,047,186)$      

Differences between expected and actual experience...........................................

  on pension plan investments................................................................................

Total deferred outflows/(inflows)...........................................................................

Changes of assumptions.........................................................................................

City's contribution to the pension plan subsequent to the measurement date....

D - 30

CITY OF POOLER, GEORGIA NOTES TO THE BASIC FINANCIAL STATEMENTS 

DECEMBER 31, 2018 

The  amount  of  deferred  outflows  of  resources  related  to  pensions  resulting  from  City  contributions subsequent to the measurement date, $1,222,690, will be recognized as a reduction of the net pension liability  in  the  year  ending  December  31,  2019.    Other  amounts  reported  as  deferred  outflows  of resources and deferred inflows of resources related to pensions will be recognized as pension expense for the next six years as follows: 

Assumption

Demographic Change Investment Total

768,181$       163,156$       524,955$       1,456,292$     

1,062,881   464,898    ‐    1,527,779  

(342,047)   (118,272)   (174,985)   (635,304)  

1,489,015   509,782    349,970    2,348,767  

Assumption

Demographic Change Investment Total

(130,014)   ‐    (564,390)   (694,404)  

‐    ‐    (669,201)   (669,201)  

21,669    ‐    294,750    316,419   

(108,345)   ‐    (938,841)   (1,047,186)   

1,380,670$      509,782$       (588,871)$      1,301,581$     

Recognized  i n  future  years :

2019 320,379$       118,272$       (119,764)$      318,887$      

2020 320,379    118,272    (80,141)   358,510   

2021 320,379    118,272    (255,126)   183,525   

2022 264,055    77,483    (133,840)   207,698   

2023 155,478    77,483    ‐    232,961   

1,380,670$      509,782$       (588,871)$      1,301,581$     

Outflows

Beginning balance, 01/01/2018...........

Amount recognized..............................

Total outflows......................................

Totals...................................................

Inflows

Beginning balance, 01/01/2018...........

Amount recognized..............................

Total inflows........................................

Established in 2018..............................

Established in 2018..............................

Totals...................................................

The required schedule of changes in the City’s net pension liability and related ratios and the schedule of City Contributions immediately follow the notes to the financial statements. 

(This area purposely left blank)

D - 31

CITY OF POOLER, GEORGIANOTES TO THE BASIC FINANCIAL STATEMENTS

DECEMBER 31, 2018

B. Other Postemployment Benefits

Plan description. The City of Pooler OPEB Plan is a defined benefit postretirement health and prescription drug plan. The Plan is administered by the Georgia Municipal Employees Benefit System (GMEBS), an agent-multiple employer OPEB Plan administered by the Georgia Municipal Association (GMA). The GMA issues a publicly available financial report that can be obtained by writing to the Georgia Municipal Association, 201 Pryor Street, SW, Atlanta, Georgia 30303.

Plan membership – At July 1, 2016, the Plan’s valuation date, City plan membership consisted of the

following:

10

-

195

205

Retired members or beneficiaries currently receiving benefits...........................

Vested terminated members entitled to but not yet receiving benefits.............

Active members.......................................................................................................

Total.........................................................................................................................

Benefits provided. The City Council has the authority to establish and amend the OPEB Plan. The City provides medical and prescription drug benefits to retirees. Retirees’ spouses are eligible for the same benefits as the retiree. Employees are eligible for benefits if they retire on or after age 55 with at least fifteen years of service, and the subsidy is tiered based on service.

City Contributions – The City has been pre-funding the Plan, contributing the actuarially determined contribution to the trust and paying annual costs from general assets.

Net OPEB Liability

The City’s net OPEB liability was measured as of December 31, 2017 and 2016. The Plan Fiduciary Net Position (plan assets, if any) was valued as of the measurement dates and the Total OPEB Liability was determined from actuarial valuations using data as of July 1, 2016.

Actuarial assumptions. The total OPEB liability was measured as of December 31, 2017 using the

following actuarial assumptions, applied to all periods included in the measurement, unless otherwise

specified:

Investment rate of return 3.25%

Salary increases 3.50% to 8.50%, including inflation

Discount rate 7.50%

Healthcare cost trend rates Medical and prescription drug: 7.00% trended down to 4.50% over 10 years

Administrative expenses: Included in premium

Mortalty rates RP-2000 Combined Healthy Mortality Table with sex-distinct rates, set

forward two years for males and one year for females

The actuarial assumptions used in July 1, 2016 valuation were based on the results of an actuarial

experience study for the period January 1, 2010 to June 30, 2014.

D - 32

CITY OF POOLER, GEORGIANOTES TO THE BASIC FINANCIAL STATEMENTS

DECEMBER 31, 2018

Determination of Discount Rate

The long-term expected rate of return on OPEB plan investments was set by the investment advisor to be 7.50%. The rate was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the target asset allocation as of December 31, 2017 are summarized in the following table:

Long-term

Target Expected Real

Allocation Rate of Return

Domestic equity 45.00% 6.75%

International equity 20.00% 7.45%

Real estate 10.00% 4.55%

Global Fixed income 5.00% 3.30%

Domestic Fixed income 20.00% 1.75%

Total 100.00%

Asset Class

Discount rate. The discount rate used to measure the total OPEB liability was 7.50%. The projection of

cash flows used to determine the discount rate assume that City contributions will be made at rates

equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s

fiduciary net position was projected to only cover all of the projected benefit payments of current plan

members.

Changes in the Net OPEB Liability

Total OPEB Fiduciary Net Net OPEB

Liability Position Liability

2,864,025$ 2,097,132$ 766,893$

Changes for the year:

108,046 - 108,046

228,341 - 228,341

(146,308) - (146,308)

109,915 109,915

- 325,054 (325,054)

- 379,119 (379,119)

(51,480) (51,480) -

- (3,181) 3,181

248,514 649,512 (400,998)

3,112,539$ 2,746,644$ 365,895$

Balances at beginning of year...............................................

Service cost.........................................................................

Net changes...........................................................................

Balances at end of year.........................................................

Interest...............................................................................

Difference between expected and actual experience.....

Contributions, employer....................................................

Net investment income.....................................................

Benefit payments...............................................................

Administrative expense.....................................................

Change in assumptions......................................................

Changes in assumptions. The discount rate effective for December 31, 2016 was 7.75%, and effective

for December 31, 2017 was 7.50%

D - 33

CITY OF POOLER, GEORGIA NOTES TO THE BASIC FINANCIAL STATEMENTS 

DECEMBER 31, 2018 

Sensitivity of the net OPEB liability to changes in the discount rate. The following presents the net OPEB 

liability of  the City, as well as what  the City’s net OPEB  liability would be  if  it were calculated using a 

discount rate that is 1‐percentage point lower (6.5 percent) or 1‐ percentage point higher (8.5 percent) 

than the current discount rate: 

1% Decrease in Current 1% Increase

Discount Rate Discount Rate Discount Rate

(6.50%) (7.50%) (8.50%)

823,228$      365,895$         (9,309)$     Net OPEB liability (asset)................................................

Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates. The following presents 

the  net OPEB  liability  of  the  City,  as well  as what  the  City’s  net OPEB  liability would  be  if  it were 

calculated using healthcare cost trend rates that are 1‐percentage‐point  lower (6.0 percent decreasing 

to 3.5 percent) or 1‐percentage‐point higher  (8.0 percent decreasing  to 5.5 percent)  than  the current 

healthcare cost trend rates: 

1% Decrease Current 1% Increase

Healthcare Cost Healthcare Cost Healthcare Cost

Trend Rates Trend Rates Trend Rates

(48,054)$       365,895$         876,352$     Net OPEB liability (asset)................................................

OPEB plan  fiduciary net position. Detailed  information about  the OPEB Plan’s  fiduciary net position  is 

available in the separately issued financial report. 

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB 

For the year ended December 31, 2018, the City recognized OPEB expense of $124,606.   At December 

31, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to 

OPEB from the following sources: 

Deferred Outflow Deferred Inflow

of Resources of Resources

‐$       125,406$      

94,212    ‐  

Net difference between projected and actual earnings

‐    169,356   

31,684    ‐  

125,896$       294,762$      

Differences between expected and actual experience...........................................

  on pension plan investments................................................................................

Total deferred outflows/(inflows)...........................................................................

Changes of assumptions.........................................................................................

City's contribution to the OPEB plan subsequent to 12/31/2017...........................

D - 34

CITY OF POOLER, GEORGIA NOTES TO THE BASIC FINANCIAL STATEMENTS 

DECEMBER 31, 2018 

The  amount  of  deferred  outflows  of  resources  related  to  OPEB  resulting  from  City  contributions 

subsequent to the December 31, 2017 measurement date, $31,684, will be recognized as a reduction of 

the  net OPEB  liability  in  the  year  ending December  31,  2019.   Other  amounts  reported  as  deferred 

outflows of resources and deferred  inflows of resources related to OPEB will be recognized as pension 

expense for the next six years as follows: 

Assumption

Recognized in future years: Demographic Change Investment Total

2019 (20,901)$      15,702$       (42,339)$      (47,538)$       

2020 (20,901)   15,702    (42,339)   (47,538)    

2021 (20,901)   15,702    (42,339)   (47,538)    

2022 (20,901)   15,702    (42,339)   (47,538)    

2023 (20,901)   15,702    ‐    (5,199)   

Thereafter (20,901)   15,702    ‐    (5,199)   

(125,406)$      94,212$       (169,356)$      (200,550)$     Totals...................................................

C. Risk Management

The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets;errors  or  omissions;  and  workers  compensation  for  which  the  City  carries  the  following  insurancecoverages.    There were  no  significant  reductions  of  insurance  coverage  compared  to  the  prior  year.Settled claims have not exceeded coverage in any of the past three fiscal years.

Risk Pools

The  City  joined  the  Georgia  Interlocal  Risk Management  Agency  (GIRMA).  Insurance  coverage  anddeductible options for property, casualty and crime under the policy are selected by City’s managementbased on  the anticipated needs.   The City  is required  to pay all premiums, applicable deductibles andassessments billed by GIRMA, as well as following loss reduction and prevention procedures establishedby GIRMA.   GIRMA’s  responsibility  includes  paying  claims,  and  representing  the  City  in  defense  andsettlement of claims. GIRMA’s basis for estimating the liabilities for unpaid claims is “IBNR” establishedby an actuary.  The City has not compiled a record of the claims paid up to the applicable deductible forthe prior year or the current fiscal year.

The City  is unaware of any claims which the City  is  liable (up to the applicable deductible) which wereoutstanding and unpaid at December 31, 2018.

No provisions have been made  in  the  financial statements  for  the year ended December 31, 2018  forany estimate of potential unpaid claims.

The City has elected to be a member of the Georgia Municipal Association Workers’ Compensation Self‐Insurance Fund (GMAWCSIF), a risk management agency created under Georgia law.  As a participant inthe GMAWCSIF, the City has no legal obligation to pay its own workers’ compensation claims.  The City isrequired to make an annual contribution to the fund  in an amount that  is determined on the basis ofactuarial projections of losses.  With payment of the City’s annual contribution, the City has effectivelytransferred the risk and responsibility for payment of  its workers’ compensation claims.   However, theenabling statute creating the GMAWCSIF permits the fund to  levy an assessment upon  its members tomake up any deficiency the fund may have in surplus or reserves.  No amount has been recorded in thefinancial  statements  for  this  contingency  as management  believes  the  likelihood  for  assessment  isremote.

D - 35

CITY OF POOLER, GEORGIA NOTES TO THE BASIC FINANCIAL STATEMENTS 

DECEMBER 31, 2018 

Self‐Insurance 

The  City  pays  unemployment  claims  to  the  state  department  of  labor  on  a  reimbursement  basis.  Liabilities for such claims are immaterial and are not accrued. 

D. Contingencies

The City  receives a number of grants  that are  subject  to program compliance audits by  the grantors.Noncompliance with  the  terms  and  provisions  of  these  grant  agreements  could  result  in  contingentliabilities to the grantor agencies.

Various other claims are pending against the City.   The City attorney estimates the potential effects ofthese  claims  net  of  insurance  coverage would  not  be material  to  in  relation  to  the  overall  financialstatements.

E. Construction and Other Commitments

At  December  31,  2018,  the  City  had  contractual  commitments  on  uncompleted  road  and  drainageprojects as follows:

Total Remaining

Capital Projects Commitment Spent‐to‐Date Commitment

844,363$      790,727$       53,636$      

1,181,145     998,900    182,245   

235,881$      

Traffic signal projects......................................

Drainage projects............................................

F. Restatement of Beginning Balances

The City has determined  that  a  restatement of  the beginning Governmental Activities, Business‐typeActivities and the Water and Sewer Fund net position  is required due to  the  implementation of GASBNo.  75  Accounting  and  Financial  Reporting  for  Postemployment  Benefit  Plans  Other  Than  Pensionsthrough which accounting for OPEB plans and the related disclosure requirements were modified. Theseadjustments  resulted  in a change  to  the beginning net position  for Governmental Activities, Business‐type Activities and the Water and Sewer Fund as follows:

Governmental Business‐type Water and

Activities Activities Sewer Fund

Beginning net position as previously

62,632,820$      40,808,410$      40,808,410$     

162,393    ‐    ‐  

Deferred outflows related to OPEB

305,096    19,958    19,958   

Recognition of total OPEB liability in

(719,806)   (47,087)   (47,087)  

62,380,503$      40,781,281$      40,781,281$     

  reported at December 31, 2018....................

  accordance with GASBS No. 75......................

Previously reported net OPEB obligation........

Net position as restated, January 1, 2018......

 benefits at January 1, 2018............................

The effect of implementing GASBS No. 75 to previously reported changes in net position has not been determined. 

D - 36

REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MANAGEMENT’S DISCUSSION & ANALYSIS

CITY OF POOLER, GEORGIA

General FundBudgetary Comparison Schedule

For the Year Ended December 31, 2018

Variance with

Original Final Actual Final Budget

REVENUES

Taxes.......................................................................... 15,327,500$ 16,243,695$ 16,934,919$ 691,224$

Licenses and permits.................................................... 655,000 655,000 1,353,033 698,033

Intergovernmental revenues........................................ 274,000 274,000 495,427 221,427

Charges for services..................................................... 2,748,714 2,885,714 3,074,542 188,828

Fines and forfeitures.................................................... 949,507 949,507 843,510 (105,997)

Investment income..................................................... 40,000 40,000 53,666 13,666

Other revenues........................................................... 70,000 70,000 258,789 188,789

Total revenues................................................................. 20,064,721 21,117,916 23,013,886 1,895,970

EXPENDITURES

Current:

General governmental:

Council............................................................... 161,865 161,865 156,326 5,539

General administration........................................ 1,884,272 2,422,127 2,417,492 4,635

Total general government........................................ 2,046,137 2,583,992 2,573,818 10,174

Public safety:

Police................................................................. 4,913,968 4,948,138 4,866,426 81,712

Fire..................................................................... 4,547,737 4,547,737 4,472,640 75,097

Total public safety.................................................... 9,461,705 9,495,875 9,339,066 156,809

Public works:

Street department.............................................. 2,028,316 2,343,816 2,343,777 39

Storm drainage................................................... 839,161 1,005,551 911,187 94,364

Solid waste and recycling...................................... 1,367,000 1,460,500 1,460,398 102

Maintenance and shop........................................ 650,914 683,509 654,334 29,175

Total public works................................................... 4,885,391 5,493,376 5,369,696 123,680

Health and welfare:

Senior citizens center........................................... 157,058 157,058 151,569 5,489

Culture and recreation:

Recreation.......................................................... 1,556,018 1,605,118 1,605,104 14

Parks.................................................................. 108,150 121,150 118,678 2,472

Total culture and recreation..................................... 1,664,168 1,726,268 1,723,782 2,486

Housing and development:

Inspections......................................................... 520,300 544,500 543,523 977

Debt service:

Principal............................................................. 446,308 445,508 445,468 40

Interest.............................................................. 59,126 61,926 61,914 12

Total expenditures........................................................... 19,240,193 20,508,503 20,208,836 299,667

Excess (deficiency) of revenues over (under) expenditures... 824,528 609,413 2,805,050 2,195,637

OTHER FINANCING SOURCES (USES)

Transfers in................................................................. 615,000 752,945 752,945 -

Transfers out............................................................... (1,627,420) (1,630,420) (1,630,167) 253

Capital lease................................................................ 187,892 187,892 - (187,892)

Sale of capital assets..................................................... - 46,000 46,005 5

Insurance recoveries.................................................... - - 13,433 13,433

Total other financing sources (uses)................................... (824,528) (643,583) (817,784) (174,201)

Net change in fund balance.............................................. - (34,170) 1,987,266 2,021,436

Fund balance, beginning of year........................................ 18,531,512 18,531,512 18,531,512 -

Fund balance, end of year................................................ 18,531,512$ 18,497,342$ 20,518,778$ 2,021,436$

Budgeted Amounts

E - 1

CITY OF POOLER, GEORGIA

Required Supplementary InformationSchedule of Changes in the Net Pension Liability and Related Ratios

For the Year Ended December 31, 2018

2015 2016 2017 2018

TOTAL PENSION LIABILITY

517,521$ 644,368$ 708,352$ 835,687$

1,171,076 1,314,389 1,477,154 1,575,795

394,269 760,039 (151,685) 1,062,881

285,520 - - 464,898

- - - 291,887

(490,518) (547,853) (689,367) (832,684)

1,877,868 2,170,943 1,344,454 3,398,464

15,355,921 17,233,789 19,404,732 20,749,186

17,233,789$ 19,404,732$ 20,749,186$ 24,147,650$

PLAN FIDUCIARY NET POSITION

1,012,162$ 802,073$ 1,087,307$ 1,143,278$

146,721 213,049 258,969 263,585

998,989 45,482 1,571,318 1,800,503

(490,518) (547,853) (689,367) (832,684)

(22,476) (26,371) (40,849) (38,349)

1,644,878 486,380 2,187,378 2,336,333

10,010,890 11,655,768 12,142,148 14,329,526

11,655,768$ 12,142,148$ 14,329,526$ 16,665,859$

5,578,021$ 7,262,584$ 6,419,660$ 7,481,791$

PLAN FIDUCIARY NET POSITION AS A PERCENTAGE

67.63% 62.57% 69.06% 69.02%

7,201,514$ 7,996,662$ 8,733,903$ 8,485,433$

NET PENSION LIABILITY AS A PERCENTAGE

77.46% 90.82% 73.50% 88.17%

Net change in total pension liability.................................

Total pension liability - beginning.....................................

Total pension liability - ending..........................................

Service cost.....................................................................

Interest...........................................................................

Differences between expected and actual experience..

Changes of assumptions................................................

Changes of benefit terms...............................................

Benefit payments...........................................................

Contributions - employer................................................

Contributions - employee...............................................

Net investment income..................................................

Benefit payments...........................................................

Administrative expense..................................................

OF COVERED PAYROLL......................................................

Net change in plan fiduciary net position.........................

Plan fiduciary net position - beginning.............................

Plan fiduciary net position - ending..................................

NET PENSION LIABILITY - ending.......................................

OF THE TOTAL PENSION LIABILITY...................................

COVERED PAYROLL............................................................

Required pension schedules are intended to report information for ten years. Historical information prior to the implementation of GASB 68 is not required. Additional information will be presented as it becomes available.

E - 2

CITY OF POOLER, GEORGIA

Required Supplementary InformationRetirement Plan Schedule of Contributions

For the Year Ended December 31, 2018

2015 2016 2017 2018

852,563$ 974,563$ 1,129,633$ 1,184,560$

Contributions in relation to the actuarially

852,537 977,188 1,118,041 1,184,560

26$ (2,625)$ 11,592$ -$

6,146,813$ 7,316,539$ 8,733,903$ 8,413,907$

CONTRIBUTIONS AS A PERCENTAGE

13.87% 13.36% 12.80% 14.08%

Actuarially determined contribution................

determined contribution.................................

Contribution deficiency (excess)......................

COVERED PAYROLL...........................................

OF COVERED PAYROLL.....................................

Required pension schedules are intended to report information for ten years. Historical information prior to the implementation of GASB 68 is not required. Additional information will be presented as it becomes available.

E - 3

CITY OF POOLER, GEORGIA

Required Supplementary InformationSchedule of Changes in the Net OPEB Liability and Related Ratios

For the Year Ended December 31, 2018

2018

TOTAL OPEB LIABILITY

108,046$

228,341

(146,308)

109,915

-

(51,480)

248,514

2,864,025

3,112,539$

PLAN FIDUCIARY NET POSITION

325,054$

-

379,119

(51,480)

(3,181)

649,512

2,097,132

2,746,644$

365,895$

PLAN FIDUCIARY NET POSITION AS A PERCENTAGE

88.24%

7,859,800$

NET OPEB LIABILITY AS A PERCENTAGE

4.66%

Net investment income..................................................

Service cost.....................................................................

Interest...........................................................................

Differences between expected and actual experience..

Changes of assumptions................................................

Changes of benefit terms...............................................

Benefit payments...........................................................

Net change in total pension liability.................................

Total OPEB liability - beginning.........................................

Total OPEB liability - ending..............................................

Contributions - employer................................................

Contributions - employee...............................................

OF THE TOTAL OPEB LIABILITY.........................................

COVERED PAYROLL............................................................

OF COVERED PAYROLL......................................................

Benefit payments...........................................................

Administrative expense..................................................

Net change in plan fiduciary net position.........................

Plan fiduciary net position - beginning.............................

Plan fiduciary net position - ending..................................

NET OPEB LIABILITY - ending.............................................

Required pension schedules are intended to report information for ten years. Historical information prior to the implementation of GASB 75 is not required. Additional information will be presented as it becomes available.

E - 4

CITY OF POOLER, GEORGIA 

Required Supplementary Information 

OPEB Plan Schedule of Contributions 

For the Year Ended December 31, 2018 

2018

173,830$     

Contributions in relation to the actuarially

31,684  

142,146$     

7,859,800$   

CONTRIBUTIONS AS A PERCENTAGE

0.40%

Actuarially determined contribution................

 determined contribution.................................

Contribution deficiency (excess)......................

COVERED PAYROLL...........................................

 OF COVERED PAYROLL.....................................

Required pension schedules are  intended to report  information for ten years.   Historical  information     prior to the  implementation  of  GASB  75  is  not  required.    Additional  information  will  be  presented  as  it  becomes available. 

E - 5

CITY OF POOLER, GEORGIA

Notes to Required Supplementary Information

December 31, 2018

NOTE 1 – BUDGETARY INFORMATION

Budgets and Budgetary Accounting

Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the general and special revenue fund. The level of legal budgetary control (the level at which expenditures may not exceed appropriations) is at the department level.

Supplemental appropriations and decreases in budget appropriations were properly approved by the City Council. For the year ended December 31, 2018, the following supplemental appropriation was approved:

Original Supplemental Supplemental Final

Fund Type Appropriation Appropriation Decreases Appropriation

General Fund.................................. 20,867,613$ 1,272,110$ 800$ 22,138,923$

Special Revenue Funds -

Hotel / Motel Tax Fund.............. 1,100,000 118,000 - 1,218,000

NOTE 2 – RETIREMENT PLAN SCHEDULE OF CONTRIBUTIONS

The actuarially determined contribution rate was determined as of July 1, 2018.

Contributions in relation to this actuarially determined contribution rate will be reported for the fiscal year ending December 31, 2019. The following methods and assumptions were used to determine contribution rates:

Valuation date July 1, 2018

Actuarial cost method Projected Unit Credit

Amortization method Closed level dollar for remaining unfunded liability

Remaining amortization period Remaining amortization varies for the bases, with a net

effective amortization period of 12 years

Asset valuation method Sum of the actuarial value at the beginning of year and the cash flow

during the year plus the assumed investment return, adjusted by 10%

of the amount that the value exceeds or is less than the market value

at end of year. The actuarial value is adjusted, if necessary, to be

within 20% of market value.

Actuarial Assumptions:

Investment rate of return 7.50%

Projected salary increases 2.75% plus service based merit increases

Cost of living adjustment 2.00% for participants hired prior to July 1, 2017

1.50% for participants hired on or after July 1, 2017

Retirement age 62+5 or 55+30 not required to be in service

Mortality See notes to the basic financial statements

Changes of Assumptions. Amounts reported for the fiscal year ending in 2018 and later reflect the following assumption changes based on an actuarial study conducted in September 2017:

The investment return assumption was decreased from 7.75% to 7.50 %

The inflation assumption was decreased from 3.25% to 2.75%

E - 6

CITY OF POOLER, GEORGIA

Notes to Required Supplementary Information

December 31, 2018

Benefit Changes. Effective July 1, 2017:

Firefighters and police officers became eligible for alternative normal retirement upon meeting the Rule of 75 with minimum age 50,

The Official’s benefit multiplier increased from $20 to $35,

Disability benefits were eliminated,

The cost of living adjustment for participants employed on or after July 1, 2017 is variable not to exceed 1.50%.

NOTE 3 – OTHER POSTEMPLOYMENT BENEFIT PLAN SCHEDULE OF CONTRIBUTIONS

Valuation date July 1, 2016

Actuarial cost method Entry Age Level Percent of Pay

Amortization method Closed 25 years, level dollar

Remaining amortization period 16 years as of June 30, 2018

Asset valuation method Market value

Actuarial Assumptions:

Investment rate of return 7.50%

Healthcare cost trend rates 7.00% initial, decreasing 0.25% per year to an

ultimate rate of 4.50%

Salary increases 3.50% to 8.50%, including inflation

Retirement age Age 55 with at least 35 years of service

Mortality Healthy: RP-2000 Combined Healthy Mortality Table

Disabled: RP-2000 Disabled Retiree Mortality Table

Changes of Assumptions. The discount rate effective for December 31, 2016 was 7.75%, and effective for December 31, 2017 was 7.50%.

Benefit Changes. There have been no benefit changes since GASB 75 implementation.

Salary Scale Change. A salary scale ranging from 3.50% to 8.50% was added.

E - 7

SUPPLEMENTARY DATA

COMBINING FUND FINANCIAL STATEMENTS, SCHEDULES AND

STATE MANDATED PROGRAM INFORMATION

NONMAJOR GOVERNMENTAL FUNDS

Special Revenue Funds

The special revenue funds are used to account for proceeds of specific revenues that are legally restricted to expenditure for particular purposes.

Confiscated Assets Fund – this fund is used to account for the receipt and disbursement of condemned monies awarded to the City by court order that are restricted to certain public safety expenditures.

Hotel / Motel Tax Fund – this fund is used to account for the City’s lodging tax revenue that is restricted to the promotion of tourism.

CITY OF POOLER, GEORGIA 

Combining Balance Sheet 

Nonmajor Governmental Funds 

December 31, 2018 

Confiscated

Assets Hotel ‐ Motel Total

ASSETS

Cash and cash equivalents....................... 11,195$      ‐$       11,195$       

Taxes receivable....................................... ‐    122,226   122,226  

Total assets.................................................. 11,195$      122,226$      133,421$     

LIABILITIES AND FUND BALANCES

Liabilities:

Accounts payable................................. ‐$       117,967$      117,967$     

Due to other funds............................... ‐    4,259   4,259   

Total liabilities......................................... ‐    122,226   122,226  

Fund balances

Restricted............................................. 11,195   ‐    11,195    

Total fund balance................................... 11,195   ‐    11,195    

Total liabilities and fund balance................ 11,195$      122,226$      133,421$     

F - 1

CITY OF POOLER, GEORGIA

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances

Nonmajor Governmental Funds

For the Year Ended December 31, 2018

Confiscated

Assets Hotel - Motel Total

REVENUES

Taxes........................................................ -$ 1,505,889$ 1,505,889$

Fines and forfeitures................................ 1,409 - 1,409

Total revenues.......................................... 1,409 1,505,889 1,507,298

EXPENDITURES

Current:

Public safety......................................... - - -

Housing and development................... - 752,944 752,944

Total expenditures................................... - 752,944 752,944

Excess (deficiency) of revenues

over (under) expenditures.................... 1,409 752,945 754,354

OTHER FINANCING SOURCES (USES)

Transfers out............................................ - (752,945) (752,945)

Total other financing sources (uses) - (752,945) (752,945)

Net change in fund balance......................... 1,409 - 1,409

Fund balance, beginning of year.................. 9,786 - 9,786

Fund balance, end of year............................ 11,195$ -$ 11,195$

F - 2

CITY OF POOLER, GEORGIA

Confiscated Asset Fund

Budgetary Comparison Schedule

For the Year Ended December 31, 2018

Variance with

Final Budget

Positive

Original Final Actual (Negative)

REVENUES

Fines and forfeitures................................. -$ -$ 1,409$ 1,409$

Total revenues.............................................. - - 1,409 1,409

EXPENDITURES

Current:

Public Safety........................................... - - - -

Total expenditures....................................... - - - -

Excess (deficiency) of revenues over

(under) expenditures................................. - - 1,409 1,409

Net change in fund balance......................... - - 1,409 1,409

Fund balance, beginning of year.................. 9,786 9,786 9,786 -

Fund balance, end of year............................ 9,786$ 9,786$ 11,195$ 1,409$

Budgeted Amounts

F - 3

CITY OF POOLER, GEORGIA

Hotel / Motel Tax Fund

Budgetary Comparison Schedule

For the Year Ended December 31, 2018

Variance with

Final Budget

Positive

Original Final Actual (Negative)

REVENUES

Taxes......................................................... 1,230,000$ 1,505,889$ 1,505,889$ -$

Total revenues.............................................. 1,230,000 1,505,889 1,505,889 -

EXPENDITURES

Current:

Housing and development..................... 615,000 752,944 752,944 -

Total expenditures....................................... 615,000 752,944 752,944 -

Excess (deficiency) of revenues over

(under) expenditures................................. 615,000 752,945 752,945 -

OTHER FINANCING SOURCES (USES)

Transfers out............................................. (615,000) (752,945) (752,945) -

Total financing sources (uses)..................... (615,000) (752,945) (752,945) -

Net change in fund balance......................... - - - -

Fund balance, beginning of year.................. - - - -

Fund balance, end of year............................ -$ -$ -$ -$

Budgeted Amounts

F - 4

CITY OF POOLER, GEORGIA

Municipal Court Fund

Statement of Changes in Assets and Liabilities

For the Year Ended December 31, 2018

Beginning Ending

Balance Additions Deletions Balance

ASSETS

Cash........................................................... 160,155$ 1,870,450$ 1,764,827$ 265,778$

Fines receivable........................................ 130,319 - 130,319 -

Total assets.................................................. 290,474$ 1,870,450$ 1,895,146$ 265,778$

LIABILITIES

Due to others............................................. 290,474$ 1,870,450$ 1,895,146$ 265,778$

Total liabilities............................................. 290,474$ 1,870,450$ 1,895,146$ 265,778$

F - 5

CITY OF POOLER, GEORGIA

Schedule of Projects Constructed with Special Purpose Local Option Sales Tax Proceeds

December 31, 2018

Original Revised

Estimated Estimated Prior Current Total

Project Cost Cost Years Year Cost

Sales Tax VI (2014-2020)

Capital Outlay Projects:

Public safety facilities and equipment.. 8,400,000$ 8,400,000$ 4,694,471$ 1,553,541$ 6,248,012$

Traffic signal project.............................. 1,500,000 1,500,000 1,290,463 70,805 1,361,268

Street and road improvements.............. 2,500,000 2,500,000 144,920 - 144,920

Recreational facilities............................ 4,500,000 4,500,000 5,315,038 - 5,315,038

Totals............................................................ 16,900,000$ 16,900,000$ 11,444,892$ 1,624,346$ 13,069,238$

2,291,229$

(666,883)

1,624,346$

Total SPLOST fund expenditures (see page D - 6)........................................................................

Total expenditures funded with SPLOST proceeds........................................................................

Principal on public safety equipment included in schedule......................................................

F - 6

CITY OF POOLER, GEORGIA

Schedule of Required Expenditures Generated by the Hotel / Motel Tax

For the Year Ended December 31, 2018

REVENUES

Hotel/Motel taxes............................................................................................... 1,505,889$

EXPENDITURES

Tourism expenditures......................................................................................... 752,944$

Percentage of expenditures to revenues.............................................................. 50%

F - 7

COMPONENT UNIT

CITY OF POOLER, GEORGIA

Pooler Development Authority

Balance Sheet

December 31, 2018

ASSETS

Cash and cash equivalents.................................... 144,947$

LIABILITIES AND FUND BALANCE

Liabilities

Accounts payable............................................... -$

Fund balance

Assigned - housing and development............... 144,947

Total liabilities and fund balance............................ 144,947$

F - 8

CITY OF POOLER, GEORGIA

Pooler Development Authority

Statement of Revenues, Expenditures, and Changes in Fund Balance

For the Year Ended December 31, 2018

REVENUES

Charges for services.............................................. -$

Investment earnings............................................. -

Total revenues......................................................... -

EXPENDITURES

Current

Housing and development................................. 3,795

Net change in fund balance..................................... (3,795)

Fund balance at beginning of year.......................... 148,742

Fund balance at end of year.................................... 144,947$

F - 9

STATISTICAL SECTION

This part of the City of Pooler, Georgia’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Contents Page

G-2

These schedules contain trend information to help the reader understand how the city's

financial position has changed over time.

G-10

These schedules contain information to help the reader understand and assess the factors

affecting the city's ability to generate its most significant local revenue sources, the property

tax and the sales tax.

G-17

These schedules present information to help the reader assess the affordability of the city's

current levels of outstanding debt and the city's ability to issue additional debt in the

future.

G-23

These schedules offer economic and demographic indicators to help the reader understand

the environment within which the city's financial activities take place and to provide

information that facilitates comparisons of financial information over time and among

governments.

G-25

These schedules contain service and infrastructure data to help the reader understand how

the information in the city's financial report relates to the services the city provides and the

activities it performs.

Operating Information..............................................................................................................................

Financial Trends.........................................................................................................................................

Revenue Capacity........................................................................................................................................

Debt Capacity..............................................................................................................................................

Demographic and Economic Information..............................................................................................

Sources: Unless otherwise noted, the information in these schedules is derived from the City’s financial reports for the relevant year.

G - 1

CITY OF POOLER, GEORGIA Net Position by Component 

Last Ten Calendar Years 

2009 2010 2011 2012 2013

Governmental activities

Net investment in capital assets............. 7,047,370$      7,684,621$      21,645,967$    22,995,624$    26,439,001$   

Restricted................................................. 1,881,686    1,804,340    1,779,908    1,431,855    681,733  

Unrestricted............................................. 8,107,120    8,716,070    10,397,712    12,469,802    14,612,090   

Total governmental activities net position.. 17,036,176$    18,205,031$    33,823,587$    36,897,281$    41,732,824$   

Business‐type activities

Net investment in capital assets............. 11,988,584$    13,321,328$    15,221,175$    15,715,267$    16,524,638$   

Restricted................................................. 1,103,235    733,445   717,391   1,506,768    1,304,856   

Unrestricted............................................. 12,278,887    11,844,420    10,176,572    12,447,030    13,888,285   

Total business‐type activities net position.. 25,370,706$    25,899,193$    26,115,138$    29,669,065$    31,717,779$   

Primary Government

Net investment in capital assets............. 19,035,954$    21,005,949$    36,867,142$    38,710,891$    42,963,639$   

Restricted................................................. 2,984,921    2,537,785    2,497,299    2,938,623    1,986,589   

Unrestricted............................................. 20,386,007    20,560,490    20,574,284    24,916,832    28,500,375   

Total primary government net position....... 42,406,882$    44,104,224$    59,938,725$    66,566,346$    73,450,603$   

2014 2015 2016 2017 2018

Governmental activities

Net investment in capital assets............. 30,325,758$    24,885,553$    44,384,681$    46,999,273$    49,007,232$   

Restricted................................................. 750,818    277,963   945    336,585   1,543,752   

Unrestricted............................................. 17,048,570    28,779,772    14,349,505    15,044,645    16,935,914   

Total governmental activities net position.. 48,125,146$    53,943,288$    58,735,131$    62,380,503$    67,486,898$   

Business‐type activities

Net investment in capital assets............. 18,147,634$    19,821,116$    23,318,018$    20,180,845$    20,676,283$   

Restricted................................................. 1,041,089    1,233,007    989,605   1,356,249    7,344,974   

Unrestricted............................................. 14,897,480    15,237,072    13,702,813    19,244,187    16,021,653   

Total business‐type activities net position.. 34,086,203$    36,291,195$    38,010,436$    40,781,281$    44,042,910$   

Primary Government

Net investment in capital assets............. 48,473,392$    44,706,669$    67,702,699$    67,180,118$    69,683,515$   

Restricted................................................. 1,791,907    1,510,970    990,550   1,692,834    8,888,726   

Unrestricted............................................. 31,946,050    44,016,844    28,052,318    34,288,832    32,957,567   

Total primary government net position....... 82,211,349$    90,234,483$    96,745,567$    103,161,784$  111,529,808$ 

G - 2

CITY OF POOLER, GEORGIAChanges in Net Position

Last Ten Calendar Years

2009 2010 2011 2012

Expenses

Governmental activities:

General government................................................... 1,111,240$ 679,957$ 540,463$ 567,380$

Public safety................................................................ 4,582,679 4,593,471 5,097,220 5,456,678

Public works................................................................. 2,644,005 2,896,229 3,865,511 3,771,731

Health and welfare...................................................... 177,029 189,957 189,121 130,926

Culture and recreation................................................. 2,091,260 1,763,580 1,292,268 1,327,503

Housing and development........................................... 681,187 649,072 642,942 685,368

Interest on long-term debt.......................................... 245,443 230,314 194,278 178,097

Total governmental activities expenses......................... 11,532,843 11,002,580 11,821,803 12,117,683

Business-type activities:

Water and sewer......................................................... 5,899,528 5,435,722 5,682,784 5,782,950

Total business-type activities expense........................... 5,899,528 5,435,722 5,682,784 5,782,950

Total primary government expenses.................................. 17,432,371$ 16,438,302$ 17,504,587$ 17,900,633$

Program Revenues

Governmental activities:

Charges for services:

General government............................................... 22,780$ 116,651$ 120,616$ 203,322$

Public safety............................................................ 452,756 534,095 951,699 954,309

Public works............................................................. 937,006 1,067,061 1,242,437 1,244,167

Health and welfare.................................................. 4,942 4,368 5,166 11,039

Culture and recreation............................................. 114,391 142,636 148,008 215,161

Housing and development....................................... 191,155 268,617 225,931 549,030

Operating grants and contributions........................ 244,329 537,167 308,606 274,781

Capital grants and contributions................................. - 316,245 14,194,386 1,147,660

Total governmental activities program revenues......................................................... 1,967,359 2,986,840 17,196,849 4,599,469

Business-type activities - water and sewer:

Charges for services.................................................... 4,065,215 4,747,291 5,219,905 5,453,942

Capital grants and contributions................................. 1,430,242 1,154,287 854,238 3,715,051

Total business type activitiesprogram revenues........................................................... 5,495,457 5,901,578 6,074,143 9,168,993

Total primary government program revenues.................... 7,462,816$ 8,888,418$ 23,270,992$ 13,768,462$

Net (Expense)/Revenue

Governmental activities.................................................. (9,565,484)$ (8,015,740)$ 5,375,046$ (7,518,214)$

Business-type activities................................................... (404,071) 465,856 391,359 3,386,043

Total primary government net expense.............................. (9,969,555)$ (7,549,884)$ 5,766,405$ (4,132,171)$

G - 3

2013 2014 2015 2016 2017 2018

748,377$      727,613$      851,414$      2,095,714$      2,393,700$      2,606,081$     

6,587,767    7,810,684    7,324,997    9,382,866    10,130,386    10,283,565   

3,907,512    4,149,557    5,544,496    5,009,280    5,317,459    5,950,846   

113,466   114,585   118,851   153,228   131,478   160,156  

1,343,641    1,534,746    1,698,857    1,898,599    2,222,201    2,260,443   

776,033   924,225   1,040,932    1,117,343    1,080,688    1,318,187   

131,198   71,561   608,396   545,076   663,710   517,112  

13,607,994    15,332,971    17,187,943    20,202,106    21,939,622    23,096,390   

5,782,950    5,684,961    6,344,911    7,077,825    7,534,225    8,323,926   

5,782,950    5,684,961    6,344,911    7,077,825    7,534,225    8,323,926   

19,390,944$    21,017,932$    23,532,854$    27,279,931$    29,473,847$    31,420,316$   

248,411$      265,511$      254,382$      718,895$      792,293$      1,009,517$     

1,131,779    1,100,826    1,047,028    1,015,823    1,014,155    969,367  

1,235,094    1,295,914    1,517,792    1,629,592    1,714,837    1,765,011   

10,425   8,989   10,055   10,310   8,698   12,149  

181,780   208,135   283,224   355,535   302,010   431,975  

398,791   682,194   582,866   551,972   814,726   1,106,289   

239,727   1,170,047    552,264   852,567   309,918   675,736  

1,221,548    1,475,855    6,383,131    3,197,039    3,527,159    3,496,987   

4,667,555    6,207,471    10,630,742    8,331,733    8,483,796    9,467,031   

5,690,369    5,994,052    6,193,991    7,227,868    7,579,123    7,889,125   

2,123,141 2,043,372 3,417,479 1,529,496 2,695,611 3,630,586

7,813,510    8,037,424    9,611,470    8,757,364    10,274,734    11,519,711   

12,481,065$    14,244,895$    20,242,212$    17,089,097$    18,758,530$    20,986,742$   

(8,940,439)$    (9,125,500)$    (6,557,201)$    (11,870,373)$  (13,455,826)$  (13,629,359)$ 

2,030,560    2,352,463    3,266,559    1,679,539    2,740,509    3,195,785   

(6,909,879)$    (6,773,037)$    (3,290,642)$    (10,190,834)$  (10,715,317)$  (10,433,574)$ 

(continued)

G - 4

CITY OF POOLER, GEORGIAChanges in Net Position

Last Ten Calendar Years

2009 2010 2011 2012

General Revenues and Other Changes in Net Position

Governmental activities:

Taxes............................................................................ 8,673,904$ 9,002,270$ 8,899,057$ 10,545,201$

Unrestricted grants, contributions and

investment earnings................................................ 469,178 119,218 209,897 9,262

Other revenue.............................................................. 36,835 46,099 75,641 37,445

Transfers.................................................................. (194,987) - - -

Total governmental activities......................................... 8,984,930 9,167,587 9,184,595 10,591,908

Business-type activities - water and sewer:

Unrestricted grants, contributions and

investment earnings................................................ 342,874 65,188 62,631 18,778

Miscellaneous income (loss)....................................... 30,079 10,892 - -

Transfers.................................................................. 194,987 - - -

Total business-type activities.......................................... 567,940 76,080 62,631 18,778

Total primary government.................................................. 9,552,870$ 9,243,667$ 9,247,226$ 10,610,686$

Change in Net Position

Governmental activities.................................................. (580,554)$ 1,151,847$ 14,559,641$ 3,073,694$

Business-type activities................................................... 163,869 541,936 453,990 3,404,821

Total primary government.................................................. (416,685)$ 1,693,783$ 15,013,631$ 6,478,515$

G - 5

2013 2014 2015 2016 2017 2018

13,701,600$    15,488,559$    16,138,769$    16,371,029$    17,093,816$    18,565,851$   

8,606     5,010   10,426   42,070   46,223   53,799  

65,776   24,253   65,182   249,117   213,476 116,104

‐   ‐    ‐    ‐    ‐    ‐   

13,775,982    15,517,822    16,214,377    16,662,216    17,353,515    18,735,754   

18,154   15,961   18,117   39,702   56,465   65,844  

‐   ‐    ‐    ‐    1,000   ‐   

‐   ‐    ‐    ‐    ‐    ‐   

18,154   15,961   18,117   39,702   57,465   65,844  

13,794,136$    15,533,783$    16,232,494$    16,701,918$    17,410,980$    18,801,598$   

4,835,543$      6,392,322$      9,657,176$      4,791,843$      3,897,689$      5,106,395$     

2,048,714    2,368,424    3,284,676    1,719,241    2,797,974    3,261,629   

6,884,257$      8,760,746$      12,941,852$    6,511,084$      6,695,663$      8,368,024$     

(conc uded)

G - 6

CITY OF POOLER, GEORGIA Fund Balances, Governmental Funds 

Last Ten Calendar Years 

2009 2010 2011 2012 2013

General Fund

Reserved................................................... 29,323$      21,835$      ‐$      ‐$      ‐$     

Unreserved............................................... 7,127,017    7,603,418    ‐   ‐   ‐  

Nonspendable.......................................... ‐   ‐   61,454   60,329   57,901  

Committed............................................... ‐   ‐   2,500,000    2,500,000    2,238,501   

Assigned................................................... ‐   ‐   201,592   499,704   2,730,086   

Unassigned............................................... ‐   ‐   6,879,213    8,555,806    9,141,363   

Total general fund........................................ 7,156,340$      7,625,253$      9,642,259$      11,615,839$    14,167,851$   

All Other Governmental Funds

Reserved................................................... ‐$      ‐$      ‐$      ‐$      ‐$     

Unreserved, reported in:

Capital projects fund............................ 1,881,686    1,807,020    ‐   ‐   ‐  

Restricted................................................. ‐   ‐   1,779,908    1,742,705    681,733$     

Assigned................................................... ‐   ‐   ‐   ‐   12,937  

Total all other governmental funds............. 1,881,686$      1,807,020$      1,779,908$      1,742,705$      694,670$     

2014 2015 2016 2017 2018

General Fund

Nonspendable.......................................... 85,187$      105,059$      92,753$      108,026$      391,539$     

Committed............................................... 494,175   ‐   77,369   89,219   224,669  

Assigned................................................... 2,416,600    2,449,905    1,088,775    1,627,420    ‐  

Unassigned............................................... 13,462,384    16,000,225    16,479,842    16,706,847    19,902,570   

Total general fund........................................ 16,458,346$    18,555,189$    17,738,739$    18,531,512$    20,518,778$   

All Other Governmental Funds

Restricted................................................. 750,818$      277,963$      884,535$      336,585$      1,543,752

Assigned................................................... 124,095   13,546,614    (913,630)    44,081   44,214

Total all other governmental funds............. 874,913$      13,824,577$    (29,095)$       380,666$      1,587,966$     

e it i e ented o in

G - 7

CITY OF POOLER, GEORGIAChanges in Fund Balances, Governmental Funds

Last Ten Calendar Years

2009 2010 2011 2012

Revenues

Property taxes.................................................................. 4,308,256$ 3,836,730$ 5,029,345$ 4,846,980$

Sales tax........................................................................... 1,869,004 1,847,966 1,936,899 2,023,034

Other taxes...................................................................... 2,274,786 2,651,273 3,488,479 3,839,389

Licenses and permits....................................................... 213,935 385,268 346,547 705,618

Revenue from other governmental units........................ 165,698 1,068,642 1,401,466 1,361,761

Charges for services........................................................ 1,101,490 1,254,534 1,485,890 1,564,953

Fines and fees................................................................. 494,960 493,626 861,420 866,788

Miscellaneous.................................................................. 199,221 73,915 74,595 126,383

Total revenue....................................................................... 10,627,350 11,611,954 14,624,641 15,334,906

Expenditures

Current:

General government................................................... 1,035,720 641,067 525,664 571,536

Public safety................................................................ 4,482,007 4,719,860 5,334,415 5,412,682

Public works................................................................. 2,452,616 3,123,455 3,645,751 3,422,650

Health and welfare...................................................... 166,244 178,518 186,770 130,695

Culture and recreation................................................. 1,776,898 1,325,487 965,203 1,046,184

Housing and development........................................... 654,731 627,950 638,730 684,284

Capital outlay............................................................... 268,839 109,677 228,596 1,733,144

Debt service:

Principal....................................................................... 508,863 358,983 1,021,638 1,426,455

Interest and other charges.......................................... 222,335 219,120 192,597 176,447

Total expenditures........................................................... 11,568,253 11,304,117 12,739,364 14,604,077

Excess (Deficiency) of revenues

over (under) expenditures............................................... (940,903) 307,837 1,885,277 730,829

Other Financing sources (uses)

Debt issuance.................................................................. 877,778 42,281 89,800 1,170,188

Transfers in...................................................................... 301,311 281,104 281,446 1,322,853

Transfers out................................................................... (301,311) (281,104) (281,446) (1,322,853)

Sale of capital assets/insurance recoveries.................... 9,305 44,129 14,817 35,360

Total other financing sources (uses)................................... 887,083 86,410 104,617 1,205,548

Net change in fund balances............................................... (53,820)$ 394,247$ 1,989,894$ 1,936,377$

Debt service as a percentage of

noncapital expenditures.................................................. 6.79% 5.69% 10.80% 13.02%

Note: Noncapital expenditures are total expenditures less capital outlay.

G - 8

2013 2014 2015 2016 2017 2018

5,033,507$      5,457,528$      5,416,884$      5,280,954$      5,527,203$      5,896,848$     

4,813,162    5,793,017    5,973,712    5,956,413    6,380,183    6,914,333   

3,879,471    4,183,634    4,748,173    5,176,745    5,284,839    5,629,627

580,252 863,735 767,959 770,840 1,019,170 1,353,033

1,474,516    1,789,118    3,869,973    3,999,221    3,813,654    3,989,820

1,533,877 1,644,598 1,940,854 2,614,190 2,746,295 3,074,542

1,025,201    970,725   917,245   861,137   868,974   844,919

112,990 136,259 128,054 207,956 145,690 315,182

18,452,976    20,838,614    23,762,854    24,867,456    25,786,008    28,018,304   

680,595   688,637   685,814   1,375,847    1,627,419    2,573,818   

6,966,088 8,300,793 8,275,476 9,037,307 9,431,445 9,339,066   

3,763,562    4,043,892    4,762,480    4,570,274    4,922,854    5,369,696   

110,821 114,450 119,919 177,076 126,608 151,569  

999,994   1,049,051    1,256,109    1,673,668    2,002,377    1,723,782   

772,837 940,947 1,047,050 1,110,503 1,078,015 1,296,467   

2,653,832    2,411,157    10,197,139    22,746,814    3,276,973    1,700,972   

1,516,173    1,828,013    414,964   1,564,177    2,189,445    2,187,352   

130,336 92,945 384,257 518,196 658,451 540,454  

17,594,238    19,469,885    27,143,208    42,773,862    25,313,587    24,883,176   

858,738   1,368,729    (3,380,354)    (17,906,406)    472,421   3,135,128   

610,724   1,095,710    18,501,801    3,066,708    580,401   ‐   

2,174,615    2,873,106    2,902,980    3,957,040    1,861,942    2,383,112   

(2,174,615)    (2,873,106)    (2,902,980)    (3,957,040)    (1,861,942)    (2,383,112)   

34,515   6,299   46,926   169,576   149,712   59,438  

645,239   1,102,009    18,548,727    3,236,284    730,113   59,438  

1,503,977$      2,470,738$      15,168,373$    (14,670,122)$  1,202,534$      3,194,566$     

11.90% 12.96% 6.32% 10.47% 13.04% 12.10%

G - 9

CITY OF POOLER, GEORGIASchedule of Tax Revenues and Franchise Fees

Last Ten Calendar Years

2009 2010 2011 2012

Local option sales and use taxes (1) 1,869,004$ 1,847,966$ 1,936,899$ 2,023,034$

Property taxes 4,308,256 3,836,730 5,029,345 4,846,980

Franchise taxes 552,363 1,050,407 1,289,667 1,482,133

Selective sales and use taxes:

Lodging tax 602,624 562,208 562,892 615,706

Alcoholic beverage excise tax 420,595 433,029 451,968 502,416

Local option mixed drink tax 45,605 50,132 52,483 53,807

Energy excise tax - - - -

Business taxes:

Business and occupation tax 307,689 178,869 185,402 182,997

Insurance premium tax 345,910 335,857 897,746 953,557

Financial institution tax - 40,771 48,321 48,773

Total tax revenue 8,452,046$ 8,335,969$ 10,454,723$ 10,709,403$

Schedule includes general fund and special revenue fund revenues.

(1) The City's local option sales and use tax is a joint City-County tax.

Counties and "qualified cities" receiving general purpose local option

sales and use tax are required to renegotiate distribution agreements

within two years of each decennial census. The City and the County

must begin renegotiation of the distribution agreement on or before

July 1, 2022. Chatham County's sales tax rate is 7.00%. The State of

Georgia receives 4.00% and the County receives 3.00%.

G - 10

2013 2014 2015 2016 2017 2018

4,802,818$ 5,759,059$ 5,905,538$ 5,866,450$ 6,265,749$ 6,790,037$

5,033,507 5,457,528 5,416,884 5,280,954 5,527,203 5,896,848

1,424,210 1,481,331 1,666,671 1,770,874 1,762,840 1,712,516

658,987 795,388 1,010,949 1,203,257 1,217,935 1,505,889

505,564 529,212 562,200 569,229 565,434 577,290

58,754 73,420 97,599 111,890 117,198 130,632

10,344 33,958 68,174 89,963 114,434 124,296

194,950 218,860 273,038 287,152 301,222 325,172

987,317 1,030,370 1,100,781 1,192,110 1,267,477 1,330,502

49,689 55,053 36,935 42,233 52,733 47,626

13,726,140$ 15,434,179$ 16,138,769$ 16,414,112$ 17,192,225$ 18,440,808$

G - 11

CITY OF POOLER, GEORGIAAssessed and Actual Value of Taxable Property

Last Ten Calendar Years

(In thousands of dollars)

Ca lendar Assessed Est im a ted Assessed Es tim a ted Assessed Est imated

Year V a l ue Actual Value Va lue Actua l Va lue V a l ue Actua l Va lue

2009 821,471$ 2,053,678$ 149,589$ 373,973$ 4,681$ 11,703$

2010 808,755 2,021,888 147,231 368,078 5,257 13,143

2011 777,266 1,943,165 180,030 450,075 5,604 14,010

2012 799,298 1,998,245 214,411 536,028 6,353 15,883

2013 833,321 2,083,303 230,093 575,233 6,932 17,330

2014 922,041 2,305,103 244,709 611,773 6,999 17,498

2015 957,037 2,392,593 253,793 634,483 7,262 18,155

2016 1,013,708 2,534,271 213,055 532,638 7,642 19,105

2017 1,045,661 2,614,153 246,154 615,385 14,928 37,320

2018 1,129,917 2,824,793 276,359 690,898 14,643 36,608

Source: Chatham County Board of Assessors - Consolidation and Evaluation of Digest

Note: The ratio of total assessed to total estimated value is set at 40% by state law.

Tax rates are per $1,000 net assessed value.

Rea l Property Pers ona l Property Ut i l i t ies and Other Property

G - 12

Rat io of Tota l

Assessed to

Tota l Tota l

Assessed Est imated Est imated Di rect Tax

V a l ue Actua l Va lue Va lue Ra te

975,741$ 2,439,354$ 40.00% 4.500

961,243 2,403,109 40.00% 4.500

962,900 2,407,250 40.00% 4.500

1,020,062 2,550,156 40.00% 4.635

1,070,346 2,675,866 40.00% 4.250

1,173,749 2,934,374 40.00% 4.179

1,218,092 3,045,231 40.00% 4.019

1,234,405 3,086,014 40.00% 3.909

1,306,743 3,266,858 40.00% 3.849

1,420,919 3,552,299 40.00% 3.799

Tota l

G - 13

CITY OF POOLER, GEORGIADirect and Overlapping Property Tax Rates

Last Ten Calendar Years

Ci ty of Pool er

Tax Year Operating School Di s tri ct County Sta te Tota l

2009 4.500 13.404 10.537 0.250 28.691

2010 4.500 14.131 10.537 0.250 29.418

2011 4.500 14.631 11.109 0.250 30.490

2012 4.635 14.631 11.109 0.200 30.575

2013 4.250 15.880 11.950 0.150 33.230

2014 4.179 15.881 11.543 0.100 32.703

2015 4.019 16.631 11.543 0.050 33.243

2016 3.909 16.631 11.543 - 32.083

2017 3.849 16.631 11.543 - 32.023

2018 3.799 18.881 11.543 - 34.223

Source: Department of Revenue - Tax Digest Millage Rates

(1) Overlapping rates are those of local and county governments that apply to property owners within

the City of Pooler.

Overla pping Ra tes (1)

G - 14

CITY OF POOLER, GEORGIAPrincipal Property Taxpayers

Current and Nine Years Ago

% of Total % of Tota l

Di stri ct Di s tri ct

Taxa ble Net Taxable Net

Assessed Assessed Assessed Assessed

Taxpayer V a l ue Ra nk V a l ue V a l ue Ra nk Va lue

JCB USA, Inc 50,382,147$ 1 3.33% 25,783,323$ 1 2.64%

Rolls-Royce North America, Inc. 21,569,933 2 1.43%

HASBRO, Inc. 19,707,666 3 1.30%

KTR SAV LLC 17,707,284 4 1.17%

Bassford N L JR 15,802,179 5 1.05%

WR Savannah Holdings LLC 14,434,297 6 0.95% 0.00%

Godley Station Apartments LP 14,253,600 7 0.94%

West Plaza RE Holdings LLC 13,845,966 8 0.92%

Pooler Park Avenue LLC 13,284,600 9 0.88%

WW Olympus Savannah Quarters Investors LLC 13,200,000 10 0.87%

Southwest Quadrant Holdings LLC 16,904,016 2 1.73%

Courtney Station LLC 12,394,248 3 1.27%

A & B Properties Inc. 12,347,000 4 1.27%

Alta Towne Lake LLC 9,977,586 5 1.02%

Savannah Housing Partners II 9,351,200 6 0.96%

929 Properties LLC 8,889,600 7 0.91%

Sixteen West Savannah LLC 7,893,400 8 0.81%

ABP Savannah-B LLC 6,656,200 9 0.68%

Walmart Stores, Inc. 6,422,563 10 0.66%

Totals 194,187,672$ 12.84% 116,619,136$ 11.29%

Source: Chatham County Board of Assessors

20092018

G - 15

CITY OF POOLERProperty Tax Levies and Collections

Last Ten Calendar Years

A m ount

Percenta ge

of Levy

Col lect ions

f or

subsequent

yea rs A m ount

Percenta ge

of Levy

2009 3,809,509$ 3,251,769$ 84.57% 557,740$ 3,809,509$ 100.00%

2010 3,863,412 2,960,033 76.61% 903,379 3,863,412 100.00%

2011 3,884,879 3,468,972 89.29% 415,718 3,884,690 100.00%

2012 4,078,827 3,795,818 93.06% 282,635 4,078,453 99.99%

2013 4,045,908 3,787,968 93.64% 257,692 4,045,660 99.99%

2014 4,635,714 4,268,796 92.10% 366,781 4,635,577 100.00%

2015 4,501,834 4,249,105 95.37% 252,547 4,501,652 100.00%

2016 4,405,497 4,205,736 95.47% 199,294 4,405,030 99.99%

2017 4,645,374 4,438,103 95.54% 201,493 4,639,596 99.88%

2018 4,954,452 4,725,566 95.38% - 4,725,566 95.38%

Source: City records.

(1) Taxes are assessed for the calendar year beginning January 1.

(2) The total tax levy includes real property, industrial area, personal property and public utilities.

The total tax levy is the original state approved levy after adjustments for cancelations, releases,

errors and additions.

(3) Collections decreased due to a two week delay in rendering tax bills.

Ca lenda r

Year (1)

Col lected wi thin the

Ca lenda r Y ea r of the Levy

Tota l

Tax Levy (2 )

Tota l Col lections to Da te

G - 16

CITY OF POOLER, GEORGIA Ratios of Outstanding Debt by Type 

Last Ten Calendar Years 

Calendar Contrac tual Notes Capital Capital

Year Obl igations Payable Leases GEFA Loans Leases

2009 4,500,000$      ‐$     1,150,315$      19,302,565$    162,628$     

2010 4,500,000    ‐   833,613   18,410,739    104,792  

2011 3,750,000    ‐   651,775   17,759,412    51,128   

2012 2,550,000    ‐   1,595,095   17,429,466    15,940   

2013 1,300,000    ‐   1,939,646   16,393,731    3,239  

2014 ‐     ‐   2,507,343   17,471,382    309,575  

2015 ‐     18,475,000    2,119,180   19,199,460    250,851  

2016 ‐     17,425,000    4,671,616   19,236,116    190,573  

2017 ‐     16,375,000    4,112,572   23,089,084    128,700  

2018 ‐     15,300,000    3,000,220   21,158,065    65,324   

Note:  Details regarding the city's outstanding debt can be found in the notes to the financial statements.

(a)See the Schedule of Demographic and Economic Statistics on page G‐23 for personal income 

and population data.

Business‐type Activ itiesGovernmental  Activ ities

G - 17

Total Percentage

Primary of Personal

Government Income ( a)

Per Capita ( a)

25,115,508$ 6.90% 1,860$

23,849,144 4.54% 1,246

22,212,315 4.13% 1,145

21,590,501 3.67% 1,048

19,636,616 2.95% 893

20,288,300 2.92% 904

40,044,491 5.79% 1,790

41,523,305 5.14% 1,773

43,705,356 5.32% 1,835

39,523,609 4.69% 1,619

G - 18

CITY OF POOLER, GEORGIARatios of Net General Bonded Debt Outstanding

Last Ten Calendar Years

Calendar

Year

G eneral

Obl igat ion

Bonds Deducti ons

Net General

Bonded Debt

Outs ta nding

Percenta ge of

Actual Taxable

V a l ue of

Property Per Ca pi ta

2009 -$ -$ -$ 0.00% -$

2010 - - - 0.00% -

2011 - - - 0.00% -

2012 - - - 0.00% -

2013 - - - 0.00% -

2014 - - - 0.00% -

2015 - - - 0.00% -

2016 - - - 0.00% -

2017 - - - 0.00% -

2018 - - - 0.00% -

G enera l Bonded Debt Outstanding

G - 19

CITY OF POOLER, GEORGIADirect and Overlapping Governmental Activities Debt

As of December 31, 2018

Debt

Outs ta nding

Est im ated

Percentage

Appl i ca bl e (1)

Es tim ated

Share of

Overlapping

Debt

Overlapping debt repaid with property taxes:

Chatham County, Georgia:

DSA Chatham County Projects Series 2005A...................................... 1,410,000$ 11.21% 158,061$

DSA Union Mission Series 2009.......................................................... 1,670,000 11.21% 187,207

DSA Chatham County Projects Series 2014......................................... 7,400,000 11.21% 829,540

Mosquito Control................................................................................ 3,208,705 11.21% 359,696

Savannah-Chatham County School Board:

General Obligation Bonded Debt........................................................ 15,500,000 13.47% 2,087,850

Overlapping other debt:

Capital leases:

Chatham County, Georgia................................................................... 2,490,015 11.21% 279,131

Savannah-Chatham County School Board........................................... 16,777,778 13.47% 2,259,967

6,161,451

20,487,572

26,649,023$

Sources: Assessed value data used to estimate applicable percentages provided by the Chatham County Board of

Assessors; debt outstanding data provided by each governmental unit.

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city.

This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the

residents and businesses of Pooler. This process recognizes that, when considering the city's ability to issue and

repay long-term-debt, the entire debt burden borne by the residents and businesses should be taken into account.

However this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of

each overlapping government.

(1) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed

property values. Applicable percentages were estimated by determining the portion of another governmental unit's

taxable value that is within the city's boundaries and dividing it by each unit's total taxable value. For overlapping other

debt (County), the percentage of overlapping applicable is estimated using the city's population and dividing it by the

county's population. For overlapping other debt (School), the percentage of overlapping applicable is estimated using

the city's school enrollment and dividing it by the school district's total enrollment.

Subtotal, overlapping debt......................................................................................................................................

City of Pooler direct debt........................................................................................................................................

Total direct and overlapping debt..........................................................................................................................

G - 20

CITY OF POOLER, GEORGIALegal Debt Margin Information

Last Ten Calendar Years

2009 2010 2011 2012

Total assessed value of taxable property............... 975,740,676$ 961,243,027$ 962,899,635$ 1,020,061,805$

Less exemptions for bond purposes...................... 10,149,718 - - -

Net assessed value for bond purposes.................. 965,590,958$ 961,243,027$ 962,899,635$ 1,020,061,805$

Debt limit percentage............................................. 10% 10% 10% 10%

Debt limit................................................................. 96,559,096$ 96,124,303$ 96,289,964$ 102,006,181$

Total net debt applicable to limit:

General obligation bonds (net of set aside)....... - - - -

Legal debt margin.................................................... 96,559,096$ 96,124,303$ 96,289,964$ 102,006,181$

Total net debt applicable to the limit

as a percentage of debt limit.............................. 0.00% 0.00% 0.00% 0.00%

The present constitutional limit on direct general obligation bonds for the City of Pooler is the amount equivalent to 10%

of the net assessed valuation of taxable property for debt service (bond) purposes.

The Constitutional debt limitation applies to all general obligation bonds authorized. Additional general obligation bonds

may authorized to be issued if so approved by a majority of those voting in an election held for that purpose. The City of

Pooler has no general obligation bonds authorized but unissued.

G - 21

2013 2014 2015 2016 2017 2018

1,070,346,277$ 1,173,748,812$ 1,218,092,282$ 1,234,404,655$ 1,306,743,145$ 1,420,919,110$

- - - - - -

1,070,346,277$ 1,173,748,812$ 1,218,092,282$ 1,234,404,655$ 1,306,743,145$ 1,420,919,110$

10% 10% 10% 10% 10% 10%

107,034,628$ 117,374,881$ 121,809,228$ 123,440,466$ 130,674,315$ 142,091,911$

- - - - - -

107,034,628$ 117,374,881$ 121,809,228$ 123,440,466$ 130,674,315$ 142,091,911$

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

G - 22

CITY OF POOLER, GEORGIADemographic and Economic Statistics

Last Ten Calendar Years

Per Capita

Personal Personal Unemployment

Year Population Income ( 2 )

Income ( 1 )

Rate ( 3 )

2009 13,500 364,000,500$ 26,963$ 8.5%

2010 19,141 525,650,142 27,462 9.2%

2011 19,391 537,499,129 27,719 8.7%

2012 20,598 588,999,810 28,595 8.8%

2013 21,978 666,746,586 30,337 7.1%

2014 21,772 693,745,968 30,928 6.6%

2015 22,718 705,316,939 31,531 5.6%

2016 23,423 780,877,548 33,756 4.9%

2017 23,816 819,603,824 34,414 5.4%

2018 24,411 842,716,542 34,522 3.7%

Sources:

(1) www.city-data.com/city/Pooler-Georgia.html

(2) www.bestplaces.net/economy/city/georgia/pooler

Personal income has been estimated based upon the municipal population and

per capita personal income presented.(3)

State Department of Labor

G - 23

CITY OF POOLER, GEORGIA Principal Employers 

Current Year and Nine Years Ago 

Employer Employees Rank

Percentage 

of  Total  City  

Employment Employees Rank

Percentage 

of  Total  City  

Employment

JCB, Inc. 440   1 3.91% 240    2 3.73%

Wal‐Mart 217   2 1.93% 433    1 6.73%

Energy Systems Southeast 143   3 1.27% 0.00%

Jenkins Plumbing 140   4 1.25% 0.00%

Sam's Club 140   5 1.25% 146    3 2.27%

Nordic Logistics & Warehousing 132   6 1.17%

Hutton's Landscapes 128   7 1.14%

Publix Supermarket 125   8 1.11% 85    9 1.32%

Randstat US, LLC 107   9 0.95%

Lowe's 104   10 0.93% 105    8 1.63%

ProBuild East, LLC 136    4 2.11%

Cracker Barrel 133    5 2.07%

The Home Depot 132    6 2.05%

The Place at Pooler 105    7 1.63%

Longhorn Steakhouse 83    10 1.29%

Total 1,676     14.91% 1,598   24.85%

ou ce it u ine icen e eco d

2018 2009

G - 24

CITY OF POOLER, GEORGIAFull Time City Employees by Function/Program

Last Ten Calendar Years

2009 2010 2011 2012 2013

Function/Program

General government.......................... 10 10 13 13 15

Public safety....................................... 63 69 70 72 90

Public works....................................... 35 28 24 23 23

Culture and recreation...................... 8 13 11 11 11

Water and sewer services................. 26 19 21 17 20

Total........................................................ 142 139 139 136 159

2014 2015 2016 2017 2018

Function/Program

General government.......................... 15 15 17 21 24

Public safety....................................... 101 109 112 114 114

Public works....................................... 30 27 21 27 22

Culture and recreation...................... 11 15 20 23 21

Water and sewer services................. 16 25 26 21 12

Total........................................................ 173 191 196 206 193

Source: City Personnel Records

G - 25

CITY OF POOLER, GEORGIA Operating Indicators by Function 

Last Ten Calendar Years 

2009 2010 2011 2012 2013

Police:

Arrests...........................................................   641   601   845    987    1,337 

Fire:

Number of emergency calls.........................  2,002    2,241    2,391   2,499    2,569 

Inspections....................................................   213   724   895    687   826 

Public works:

Street resurfacing (miles).............................  0.700   ‐   1.000   1.940    1.290 

Water:

New connections...........................................   243   262   272    312   315 

Average daily consumption (gallons)...........   2,117,587   2,058,684   2,168,287   2,118,763   2,008,375 

Sewer:

New connections...........................................   243   262   272    312   315 

Average daily sewage treatment (gallons)..   1,750,000   1,617,000   1,401,000   1,812,000   1,791,781 

2014 2015 2016 2017 2018

Police:

Arrests...........................................................  1,442    1,401    1,395   1,152    1,718 

Fire:

Number of emergency calls.........................  3,005    3,421    3,846   3,982    4,130 

Inspections....................................................   684   802   701    758   813 

Public works:

Street resurfacing (miles).............................   ‐     4.730    0.840   1.870    4.090 

Water:

New connections...........................................   285   243   233    254   299 

Average daily consumption (gallons)...........   1,980,000   1,963,853   2,179,800   2,106,000   2,059,535 

Sewer:

New connections...........................................   293   243   219    240   305 

Average daily sewage treatment (gallons)..   1,890,000   2,035,042   2,224,167   2,273,000   2,348,808 

Sources:   it eco d

G - 26

CITY OF POOLER, GEORGIA

Capital Asset Statistics by Function

Last Ten Calendar Years

2009 2010 2011 2012 2013

Police:

Stations......................................................... 1 1 1 1 1

Fire:

Fire stations.................................................. 2 2 2 2 4

Public works:

Streets (miles).............................................. 81 87 102 102 102

Traffic signals............................................... 5 7 8 8 8

Parks and recreation:

Parks.............................................................. 5 5 5 5 5

Community centers....................................... 1 1 1 1 1

Water:

Maximum daily capacity (gallons)............... 3,900,000 3,697,000 3,697,000 3,697,000 3,697,000

Wastewater:

Maximum daily treatment capacity (gallons) 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000

2014 2015 2016 2017 2018

Police:

Stations......................................................... 1 1 1 1 1

Fire:

Fire stations.................................................. 4 4 4 4 4

Public works:

Streets (miles).............................................. 103 105 105 105 105

Traffic signals............................................... 8 9 9 18 18

Parks and recreation:

Parks.............................................................. 5 5 5 5 5

Community centers....................................... 1 1 1 1 1

Water:

Maximum daily capacity (gallons)............... 4,454,000 4,454,000 4,454,000 4,454,000 4,454,000

Wastewater:

Maximum daily treatment capacity (gallons) 2,500,000 2,500,000 2,500,000 3,500,000 3,500,000

Sources: City records and Georgia Department of Transportation, Office of Transportation

G - 27

COMPLIANCE SECTION

6001 CHATHAM CENTER DRIVE, SUITE 250 • SAVANNAH, GEORGIA 31405 • 478-464-8000 • FAX 478-464-8051 • www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

H - 1

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Honorable Mayor and Members of the City Council Pooler, Georgia

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Pooler, Georgia (the “City”), as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 18, 2019. Our report includes a reference to the change in accounting principle resulting from the implementation of Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other Than Pensions, as of January 1, 2018. Our opinions are not modified with respect to this matter.

Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

H - 2

Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Savannah, Georgia June 18, 2019

H - 3

CITY OF POOLER, GEORGIA

SCHEDULE OF FINDINGS AND RESPONSES FOR THE YEAR ENDED DECEMBER 31, 2018

SECTION I SUMMARY OF AUDIT RESULTS

Financial Statements Type of auditor’s report issued Unmodified

Internal control over financial reporting: Material weaknesses identified? Yes X No

Significant deficiencies identified not considered to be material weaknesses? Yes X None Reported

Noncompliance material to financial statements noted? Yes X No

Federal Awards A single audit was not performed for the fiscal year ended December 31, 2018 due to the City not expending in excess of $750,000 in federal funds.

SECTION II FINANCIAL STATEMENT FINDINGS AND RESPONSES

None reported.

SECTION III FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS

None reported.

H - 4

CITY OF POOLER, GEORGIA

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2018

STATUS OF PRIOR YEAR AUDIT FINDINGS

None reported.